2024-03-11_item_4.5_acceptance_of_the_city_of_lathrop_annual_comprehensive_financial_report_for_fy_ending_june_30_2023

ITEM 4. 5

CITY MANAGER' S REPORT
MARCH 11, 2024 CITY COUNCIL REGULAR MEETING
ITEM: ACCEPTANCE OF THE CITY OF LATHROP ANNUAL

COMPREHENSIVE FINANCIAL REPORT ( ACFR) FOR
THE FISCAL YEAR ENDING JUNE 30, 2023
RECOMMENDATION: Adopt a Resolution Accepting the City of Lathrop Annual Comprehensive Financial Report ( ACFR) for
the Fiscal Year Ending June 30, 2023
SUMMARY:

The City' s auditor, Badawi and Associates, CPA, has completed the review of the annual financial statements for the fiscal year ending June 30, 2023. The audited financial statements are incorporated into an Annual Comprehensive Financial Report ACFR). The auditors have issued an unmodified (" clean") audit opinion. An unmodified opinion indicates that the financial data of the City is fairly presented in accordance with accounting principles generally accepted in the United States of America and the standards applicable to financial audits contained in Government Audit Standards, issued by the Comptroller General of the United States. These standards require that they plan and perform the audits to obtain reasonable assurance as to whether the financial statements are free of material misstatement.

BACKGROUND:

Best financial practices as well as various financing covenants and regulations associated with restricted funding sources require the City to publish a complete set of financial statements each year presented in conformance with Generally Accepted Accounting Principles ( GAAP). The Government Code of the State of California requires general law cities, such as the City of Lathrop, to have its financial statements audited by an independent certified public accountant. Accordingly, this year' s audit was completed by the accounting firm of Badawi and Associates, CPA.

The firm was contracted to render an opinion of the City' sfinancial statements in accordance with auditing standards generally accepted in the United States of America. To ensure complete independence, Badawi and Associates, CPA presents the results of their assessment of the adequacy of internal accounting controls and the quality of financial reporting directly to the City Council.

The Annual Comprehensive Financial Report ( ACFR) for the fiscal year ended June 30, 2023 has been prepared by the City and audited by the certified public accounting firm of Badawi and Associates, CPA. The ACFR and audit of the City' s financial statements were completed on February 27, 2024, and posted on the City' s website at that time. Badawi and Associates, CPA has issued an unmodified (" clean") opinion of the ACFR which states that the financial statements are presented fairly, in all material respects.

CITY MANAGER' S REPORT PAGE 2
MARCH 11, 2024 CITY COUNCIL REGULAR MEETING

ACCEPT THE CITY OF LATHROP ANNUAL COMPREHENSIVE FINANCIAL REPORT ( ACFR) FOR THE FISCAL YEAR ENDING JUNE 30, 2023 Following completion of the ACFR, it was submitted to the Governmental Finance Officers Association ( GFOA) for the Certificate for Excellence in Financial Reporting program. The GFOA is a nationally recognized nonprofit professional association serving more than 20, 000 finance professionals in the United States and Canada, and the Certificate of Achievement is the highest form of recognition in the area of governmental accounting and financial reporting. The City of Lathrop bas been awarded the prestigious Certificate for Excellence in Financial Reporting for 26 consecutive years. A Certificate of Achievement is valid for a period of one year only.

The City' s financial statements provide information about the finances of the City in its entirety, as well as information about individual funds. The ACFR is organized into the three sections summarized below.

The Introductory section includes this transmittal letter and general information on the City' s government structure and services provided. It includes a list of principal officials, an organizational chart, and the Government Finance Officers Associations ( GFOA) Certificate of Achievement for Excellence in Financial Reporting.

The Financial section contains the independent auditor' sreport on the financial statement audit, the MD& A, basic financial statements, required supplementary information, and combined and individual fund presentations and supplementary information.

The Statistical section includes selected financial and demographic information generally presented on a multi -year basis. This information includes financial trends, revenue capacity, debt capacity, demographics and economic and operating information.

REASON FOR RECOMMENDATION:

The auditors have issued an unmodified (" clean") audit opinion. An unmodified opinion indicates that the financial data of the City is fairly presented in accordance with accounting principles generally accepted in the United States of America and the standards applicable to financial audits contained in Government Audit Standards, issued by the Comptroller General of the United States.

FISCAL IMPACT:

There is no fiscal impact associated with this action. Unmodified audit reports are an indication that City funds are being spent appropriately and as intended by the City Council, grantor agencies, and federal and State laws. They also help maintain the City' sfavorable ratings for current and future debt issuances.

CITY MANAGER' S REPORT PAGE 3
MARCH 11, 2024 CITY COUNCIL REGULAR MEETING

ACCEPT THE CITY OF LATHROP ANNUAL COMPREHENSIVE FINANCIAL REPORT ( ACFR) FOR THE FISCAL YEAR ENDING JUNE 30, 2023 ATTACHMENTS:

A. Resolution Accepting the City of Lathrop Annual Comprehensive Financial Report ( ACFR) for Fiscal Year Ending June 30, 2023.

B. City of Lathrop Annual Comprehensive Financial Report ( ACFR) for the Fiscal Year Ending June 30, 2023.

CITY MANAGER' S REPORT PAGE 4
MARCH 11, 2024 CITY COUNCIL REGULAR MEETING

ACCEPT THE CITY OF LATHROP ANNUAL COMPREHENSIVE FINANCIAL REPORT ( ACFR) FOR THE FISCAL YEAR ENDING JUNE 30, 2023 APPROVALS:

Cari James
Director of( 3nance
3/ y. zoa1`
Date
31+ 1 /10 - H
Thomas Hedegard Date
Deputy City Manager
Salvador Navarrete Date
City Attorney
344) 4 -
Ste en J Salvatore Date
City Manager
RESOLUTION NO. 24 -

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LATHROP

ACCEPTING THE ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
WHEREAS, the financial statements of the City of Lathrop for the fiscal year ended June 30, 2023, have been prepared by the City' s Finance Department; and WHEREAS, the annual financial statements were examined by the independent public accounting firm of Badawi and Associates, CPA; and WHEREAS, the City prepared the Annual Comprehensive Financial Report ACFR) for the fiscal year ended June 30, 2023 and the auditor' s opinion is included therein; and
WHEREAS, it is the opinion of the auditors that the financial statements present fairly the financial position of the City as of June 30, 2023, and that the statements were prepared in accordance with accounting principles generally accepted in the United States of America; and
WHEREAS, the auditors have issued an unmodified (" clean") audit opinion; and
WHEREAS, the ACFR and audit of the City' s financial statements were completed on February 27, 2024, and posted on the City' s website at that time; and
WHEREAS, following completion of the ACFR, it was submitted to the Governmental Finance Officers Association ( GFOA) for the Certificate for Excellence in Financial Reporting program. The City of Lathrop bas been awarded the prestigious Certificate for Excellence in Financial Reporting for 26 consecutive years. A Certificate of Achievement is valid for a period of one year only.

NOW, THEREFORE, BE IT RESOLVED that the City Council does hereby accept the Annual Comprehensive Financial Report for the Fiscal Year ended June 30, 2023.

The foregoing resolution was passed and adopted this 11th day of March 2024, by the following vote of the City Council, to wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

Sonny Dhaliwal, Mayor
ATTEST: APPROVED AS TO FORM:

Teresa Vargas, City Clerk Salvador Navarrete, City Attorney City of Lathrop
390 Towne, Centre Drive
Lathrop, CA 95330
https // www. ci. tathrop. ca. us/

ANNUAL COMPREHENSIVE

FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2023

CITY OF LATHROP, CALIFORNIA

ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
Prepared by:

Finance Department
Cari James, Director of Finance
City of Lathrop
For the Year Ended June 30, 2023
Table of Contents
INTRODUCTORY SECTION: Page
Letter of Transmittal vii
Organizational Chart xii
Directory of Officials and Advisory Bodies xiii
FINANCIAL SECTION:

INDEPENDENT AUDITORS' REPORT 1
MANAGEMENT DISCUSSION AND ANALYSIS 5

BASIC FINANCIAL STATEMENTS
Government - wide Financial Statements:

Statement of Net Position 25
Statement of Activities 26
Governmental Fund Financial Statements:

Balance Sheet - Governmental Funds 32
Reconciliation of the Balances Sheet of Governmental Funds to the Statement of Net Position 34
Statement of Revenues Expenditures and Changes in Fund
Balances - Governmental Funds 36
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the
Statement of Activities 38
Proprietary Fund Financial Statements:

Statement of Net Position - Proprietary Funds 40
Statement of Revenues, Expenses and Changes in Fund
Net position - Proprietary Funds 41
Statement of Cash Flows - Proprietary Funds 42
Fiduciary Fund Financial Statements:

Statement of Fiduciary Net Position 44
Statement of Changes in Fiduciary Net Position 45
Notes to Financial Statements 49
City of Lathrop
For the Year Ended June 30, 2023
Table of Contents
FINANCIAL SECTION, Continued:

REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Proportionate Share of the Net Pension Liability - Cost -Sharing Multiple Employer PIan90 Schedule of Plan Contributions - Cost -Sharing Multiple Employer Plan 92 Schedule of Changes in the Net OPEB Liability and Related Ratios 94 Schedule of OPEB Contributions 96
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual:

General Fund 98
Capital Facility Fees Special Revenue Fund 100
Building Safety & Inspection Special Revenue Fund 101
Notes to the Required Supplementary Information 102

SUPPLEMENTARY INFORMATION
General Fund:

Description of General Funds 104
Combining Balance Sheet 105
Combining Statement of Revenues, Expenditures and Changes in Fund Balance 106
Statements of Revenues, Expenditures and Change in Fund Balances - Budget and Actual General Purpose Fund 108
Economic Development 110
Measure C 111
Major Funds:

Statements of Revenues, Expenditures and Change in Fund Balances - Budget and Actual Streets and Roads Capital Project Fund 112
General CIP Projects Capital Project Fund 113
Non -Major Governmental Funds:

Description of Non -Major Funds 114
Combining Balance Sheet 118
Combining Statement of Revenues, Expenditures and Changes in Fund Balance 126 ii
City of Lathrop
For the Year Ended June 30, 2023
Table of Contents
FINANCIAL SECTION, Continued:

SUPPLEMENTARY INFORMATION, Continued
Non -Major Governmental Funds, Continued:

Statements of Revenues, Expenditures and Change in Fund Balances - Budget and Actual Developer Projects 134
Developer Engineering 135
Developer Deposits 136
Landscape Maintenance 137
Gas Tax 138
Traffic Safety 139
Local Street 140
Public Nuisance 141
Measure K Fund 142
Transit LTF 143
Streets and Roads 144
Federal Grant 145
Historic Lathrop Loan Program ( HLLP) 146
Storm Drain 147
Street Light 148
AB939 Recycling Fund 149
Community Development Block Grant 150
Scholarship Fund 151
COPS 152
RTIF San Joaquin County 153
RTIF Lathrop Local West 154
RTIF SJCOG 155
RTIF Lathrop Local East 156
LMFD Measure C 157
State Grants 158
North Lathrop Transportation 159
Citywide Economic Dev Fee 20% 160
River Islands CFD 2013- 1 161
Lathrop Land Acquisitions 162
ULOP RD -17 Levee Impact 163
DWR Grant - ULOP Project 164
CLSP Off -Site Roadway Improvement Fund 165
South Lathrop CFD 2019- 1Fund 166
Central Lathrop CFD 2019- Fund 167
iii
City of Lathrop
For the Year Ended June 30, 2023
Table of Contents
FINANCIAL SECTION, Continued:

SUPPLEMENTARY INFORMATION, Continued
Non -Major Governmental Funds, Continued:

Statements of Revenues, Expenditures and Change in Fund Balances - Budget and Actual, Continued:

Stewart Economic Dev Fee 80% 168
TOT Trust 169
Gateway Business Park 170
Storm Drain 171
Park in Lieu 172
Custodial Funds:

Combining Statement of Fiduciary Net Position 174
Combining Statement of Changes in Fiduciary Net Position 176 STATISTICAL SECTION:

Financial Trends:

Net Position by Component 180
Changes in Net Position 182
Fund Balances of Governmental Funds 184
Changes in Fund Balances of Governmental Funds 186
Revenue Capacity Information:

Property Tax Levies and Collections 188
Assessed Value and Estimated Actual Value of Taxable Property 189 Principal Property Taxpayers 190
Debt Capacity Information:

Property Tax Rates - Direct and Overlapping Governments 191 Sales Tax Rates - Direct and Overlapping Governments 192 Legal Debt Margin Information 194
Outstanding Debt 196
Computation of Direct and Overlapping Debt 198
Pledged -Revenue Coverage 200
Demographic and Economic Information:

Demographic and Economic Statistics 202
Principal Employers 203
iv
City of Lathrop
For the Year Ended June 30, 2023
Table of Contents
STATISTICAL SECTION, Continued:

Operating. Information:

Full -Time and Part -Time City Employees by Function 204 Operating Indicators by Function 206
Capital Asset Statistics by Function 207
Water Sold by Type of Customer 208
Water Rates 209
Ten Largest Water Customers 210
Top 25 Sales Tax Producers 211
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vi
February 27, 2024
Department ofFinance
390 Towne Centre Drive
Lathrop, California 95330
209- 941- 7320
To the Honorable Mayor, Members of the City Council and Citizens of Lathrop Lathrop, California 95330
The Annual Comprehensive Financial Report of the City of Lathrop for the fiscal year (FY) ended June 30, 2023 is hereby submitted. Responsibility for both the accuracy of the data and the completeness and fairness of the presentation, including all disclosures, rests with the City of Lathrop. To the best of our knowledge and belief, the enclosed data is accurate in all material respects and is reported in a manner that presents fairly the financial position and results of operations of the various funds of the City of Lathrop. All disclosures necessary to enable the reader to gain an understanding of the City' sfinancial activities have been included.

This Annual Comprehensive Financial Report includes a summary of funds for the City of Lathrop and reports all activities considered to be a part of, controlled by, and dependent on the City. The accounts of the City are organized on the basis of fund accounting with each fund considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self -balancing accounts that comprise its assets, liabilities, deferred outflows/ inflows of resources, fund equity, revenues and expenditures, or expenses as appropriate.

Government resources are allocated to, and accounted for, in individual funds based upon the purpose for which they are to be spent and the means by which spending activities are controlled.

The Annual Comprehensive Financial Report is prepared in accordance with Generally Accepted Accounting Principles ( GAAP) as set forth in pronouncements by the National Council of Governmental Accounting ( NCGA) and the Governmental Accounting Standards Board ( GASB) and includes the report of the City' s independent certified public accountants, Badawi and Associates. Based on the audit, the independent auditors concluded that there was reasonable basis for rendering an unmodified opinion which states that the City' sfinancial statements for the fiscal year ended June 30, 2023, are fairly presented in conformity with GAAP. The independent auditors report is presented as the first component of the financial section of this report.

Management' s discussion and analysis ( MD& A) is required supplementary information and provides information and analysis that users need to interpret the basic financial statements. This transmittal letter is designed to complement the MD& A, and, therefore, should be read with it. The City' s MD& Acan be found immediately
following the independent auditor' sreport.

INTERNAL CONTROLS
To provide a reasonable basis for making these representations, City management has established a comprehensive internal control framework that is designed to ensure that the assets of the government are protected from loss, theft, or misuse and to ensure that adequate accounting data are compiled to allow for the preparation of financial statements in conformity with GAAP in the United States of America. vii
The internal control structure is designed to provide reasonable, but not absolute, assurance these objectives are met. The concept of reasonable assurance recognizes that ( 1) the cost of control should not exceed the benefits likely to be derived from the control, and ( 2) the valuation of costs and benefits requires estimates and judgments by management. All internal control evaluations occur within the above stated framework. We believe our internal accounting controls adequately safeguard assets and provide reasonable assurance that financial transactions are properly recorded.

INDEPENDENT AUDIT REPORT
The City Council is responsible for: 1) assuring the City administration fulfills its responsibilities in the preparation of the financial statements and 2) engaging certified public accountants to ensure sound audit and the accounting principles are applied in financial reporting.

The Government Code of the State of California requires general law cities, such as the City of Lathrop, to have its financial statements audited by an independent certified public accountant. Accordingly, this year' s audit was completed by the accounting firm of Badawi and Associates. The firm was engaged by the City Administration to render an opinion of the City' s financial statements in accordance with auditing standards generally accepted in the United States of America. To ensure complete independence, Badawi and Associates presents the results of their assessment of the adequacy of internal accounting controls and the quality of financial reporting directly to the City Council. The auditor' sreport on the basic financial statements is the first item in the accompanying Financial Section.

In addition to meeting the requirements set forth in state statutes, the audit was also designed to meet the requirements of the Federal Single Audit Act, Title 2 U. S. Code of Federal Regulations ( CFR) Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards ( Uniform Guidance).

The standards governing Single Audit engagements require the independent auditor to report not only on the fair presentation of the financial statements, but also on the audited government' sinternal controls and compliance with legal requirements.

REPORT ORGANIZATION:

The report is organized in three sections: introductory, financial, and statistical.

1. The Introductory section includes this transmittal letter and general information on the City' s government structure and services provided. It includes a list of principal officials, an organizational chart, and the Government Finance Officers Associations ( GFOA) Certificate of Achievement for Excellence in Financial Reporting.

2. The Financial section contains the independent auditor' sreport on the financial statement audit, the MD& A, basic financial statements, required supplementary information, and combined and individual fund presentations and supplementary information.

3. The Statistical section includes selected financial and demographic information generally presented on a multi -year basis. This information includes financial trends, revenue capacity, debt capacity, demographics and economic and operating information.

PROFILE OF LATHROP
The City of Lathrop encompasses approximately 22 square miles. The City of Lathrop is located in San Joaquin County at the center of the Northern California metro market, close to the San Francisco Bay Area and Greater Sacramento regions, at the interchange of three major freeways: Interstate 5 ( 1-5), Interstate 205 ( 1- 205), and the Highway 120 Freeway. As of January 1, 2023, the City had an estimated population of 35, 080.

The City of Lathrop is a general -law city incorporated under California law July 1, 1989. The City operates under the City Council / Manager form of government. Beginning with the municipal election in November 1996, the position of the Mayor is elected for a two- year term. Four Council Members are elected at -large and serve alternating four- year terms. Every two years in December, the Mayor and Council Members select a Council Member to serve as Vice -Mayor. The City Manager also serves as City Treasurer and the City Clerk is appointed by the City Manager. All municipal elections are non- partisan. viii
The City of Lathrop provides a wide range of municipal services, including police public safety, water and sewer utilities, street maintenance, community services, parks and recreation, planning, building, code enforcement, and other general government services.

Fire services such as fire suppression and prevention are provided for the City by Lathrop -Manteca Fire Protection District and are funded separately by the Fire District. The Fire District provides specialized equipment and trained personnel 24 hours a day for emergency assistance to all residents. The Fire District and the City work together for the mutual benefit of both agencies and the citizens they serve.

ECONOMIC CONDITION AND FINANCIAL OUTLOOK
Historically, Lathrop has been an agricultural - based community, however, the continuing dynamic outward growth of the San Francisco Bay Area has pushed industrial, warehousing, and logistics growth into the Northern San Joaquin Valley. This has benefited Lathrop due to its strategic location at the intersection of three major freeways.

The City continues to experience a period of growth with consistently strong demand in residential construction to accommodate continuing job growth in the Northern San Joaquin Valley and in the neighboring Tri Valley Area of the East Bay. Permit issuance remained strong in FY 2022/3 with building permits continuing to be issued at a rate consistent with an agency that is one of the fastest growing in the State. Revenues, such as property tax, development related fees, community facility district revenues and sales tax are all positively impacted from increased development activity either directly from fees received or indirectly due to increased population.

The City has recently begun to enjoy a strong economic base from years of smart growth and planning initiatives resulting in stable property tax revenue, modest transient occupancy taxes and diverse sales tax revenues. The City' s sales tax revenues remain stable and, over the past several years, have continued to experience annual increases. The City' ssales tax revenues are expected to show modest annual increases as population and consumer activity continue to rise and businesses continue to view Lathrop as an attractive location.

Like all government agencies throughout California, the City is faced with increased ongoing annual operating costs and rising retirement related liabilities. For Lathrop, some of these challenges include increased funding needs for pavement maintenance, facility and park maintenance, new programs and departments, additional personnel, retiree health care costs, and rising pension costs due to new funding policies adopted by the California Public Employees Retirement System ( CalPERS). While the City has been successful over the years in balancing these issues with its strategic use of contract staffing and services, the City will continue to experience rising costs. Additionally, with the anticipation of significant impacts to revenues in the coming year, coupled with ongoing growth in expenditures over the next five years, the City will be challenged.

Sales tax growth in Lathrop was moored to commercial development throughout 2023 and is expected to stabilize throughout 2024. Sales tax is the General Fund' slargest source of revenue and has largely recovered to pre - pandemic levels, however, the state of the economy from high inflation, supply chain challenges and ongoing world events remains concerning as we head into FY 2024. The City is currently navigating an unprecedented inflation situation that has not been encountered in recent history. The ability to budget conservatively has paid dividends with the uncertainty that has come with recent economic events. This creates challenges but we remain vigilantly optimistic about Lathrop' slong- term outlook. The City' s future looks bright; with the creation of the City' s own Police Department opening in July of 2022.

City Council and Staff are dedicated to the Community and our commitment to prudently manage the City' s finances. This commitment has contributed to our ability to endure these challenging times. The financial impacts of the pandemic have largely subsided compared to the prior fiscal year.

BALANCED BUDGET
The City' s Budget and Fiscal Policy requires the City to maintain a balanced General Fund budget over the annual period of the financial plan. This means that each fiscal year, current revenues must meet or exceed operating expenditures, including debt service. Use of fund balance commitments to offset non -operating expenditures may allow for current expenditures to exceed current revenues in the fiscal year. City staff presents General Fund budgets for City Council consideration that maintain an unassigned fund balance between 10- 50% of the annual operating appropriations and transfers. Lathrop maintains adequate fund balances for emergencies in a majority of its governmental operations funds and proprietary funds. ix
The adopted budget serves as the foundation for the City of Lathrop' sfinancial planning and control system. All departments of the City submit requests for appropriations to the City Manager. The City Manager uses these requests as a starting point for developing a proposed budget. The Council holds public hearings on the proposed budget and then ultimately adopts a formal budget. The budget is adopted by fund, department, program, and line - item.

The Council periodically reviews the City' s actual financial activity in relation to the original budget, and as necessary, adjustments are made to ensure that expenditures are not outpacing anticipated revenues. The level of budgetary control ( the level at which expenditures cannot legally exceed the appropriated amount) is at the fund and department level with more stringent control over capital assets and fund balance categories, which are maintained at the line item level. The City Council must approve amendments or transfers of appropriations between funds or departments as well as items related to capital assets or fund balances. The City Council has delegated authority to the City Manager to approve transfers of appropriations between programs and divisions within a City department and between appropriation units ( e.g., salaries and benefits, services and supplies, and capital outlay) within programs, excluding special designation or project appropriations.

LONG- TERM FINANCIAL PLANNING
The City incorporates long- term financial planning into its budget process in several ways. During the biennial budget process the City Council receives an updated General Fund Ten -Year Forecast and CIP Five -Year Forecast that includes all special revenue funds associated with each project. The long- term financial model used for the General Fund and CIP looks forward ten years, because of the volatile nature of tax revenues in a commercial growth -based economy, and various one- time special revenue funds associated with development activity making it difficult to predict revenues with any certainty beyond the immediate term. The forecast is used as a tool and maintained by Finance staff.

These projections allow management to see what the future could look like given a set of assumptions and is evaluated in the context of whether decisions are sustainable over the long term. The ten- yearfinancial forecast is a tool for strategic decision making and presents further context for balancing short- tem and long- term goals and provides an " order of magnitude" feel for the General Fund' s ability to continue services and preserve fiscal sustainability. Management encourages its departments to project their resource needs for a period longer than the traditional biennial budget period. In addition, the City faces increasing expenses in several areas of operations, including the creation of the Police Department. The City has elected to proactively address its unfunded OPEB obligation by establishing an irrevocable trust and significantly increasing its contributions. At the same time, rising pension contribution requirements, while helping to reduce the unfunded pension liability, result in a decrease of financial resources available for other uses. The City will need to continue to explore options to increase its revenue base, while keeping expenses manageable.

As the economy readjusts post -pandemic, inflation continues to be a key issue in 2023. Despite higher prices and concerns over a potential recession, consumer demand has remained consistent. Property tax revenue has not been affected yet as the assessed values do not show the impact of economic volatility in a short period. Moreover, affordability and a short supply of homes available for sale has kept the local real estate market steady. Vulnerable to an economic downturn are sales tax, TOT and development -related revenues. Economic development continues to thrive as new businesses are motivated to locate in Lathrop due to its location, amenities, economic vibrancy, and high quality of life for residents.

Lastly, on November 6, 2012, the Citizens of Lathrop approved Measure C by 77%. Measure C is a general purpose 1% additional sales tax Measure to be used for the purpose of maintaining and enhancing essential City services, such as police and fire protection and youth and senior services within the City. During FY 2020/1, Measure C supported personnel and operating expenditures to manage the Lathrop Generations Center, a multipurpose facility aimed to promote healthy recreational opportunities for our youth. Furthermore, Measure C partially funded the startup of Lathrop' s own Police Department, as well as additional Lathrop Police personnel to strengthen prevention and intervention services around the community. x
Stephen J. Salvatore
City Manager

CERTIFICATE OF ACHIEVEMENT
The Government Finance Officers Association of the United States and Canada ( GFOA) has awarded the Certificate of Achievement for Excellence in Financial Reporting to City of Lathrop for its annual comprehensive financial report ( ACFR) for the fiscal year ended June 30, 2022. The ACFR has been judged by an impartial panel to meet the uppermost standards of the program, which includes demonstrating a constructive " spirit of full disclosure" to clearly communicate its financial story and motivate potential users and user groups to read the ACFR. The Certificate of Achievement is the highest form of recognition in the area of governmental accounting and financial reporting, and its attainment represents a significant accomplishment by a government and its management. This was the 26th consecutive year that the City of Lathrop has received this prestigious award.

A Certificate of Achievement is valid for a period of one year only. We believe that our current Annual Comprehensive Financial Report continues to meet the Certificate of Achievement Program' srequirements and we are submitting it to the GFOA to determine its eligibility for another certificate.

ACKNOWLEDGEMENTS
The preparation of the Annual Comprehensive Financial Report was made possible by the special efforts of the entire staff of the Finance Department, working in conjunction with the City' s independent auditors and departmental staff. We would like to express our appreciation to the Mayor and City Councilmembers for their continued efforts in stewarding the financial operations of the City in a responsible and enterprising manner.

Respectfully submitted,
Cari Jame
Director o Finance
xi

CITY COUNCIL
City Attorney City Manager
City Clerk &
Government Services
Commissions
Community
Development
City Engineer
Parks, Recreation &
Maintenance Services
Public Works
Finance
Information Systems
Technology
Police
Human
Resources
xii
ta) BADAWI & ASSOCIATES

CERTIFIED PUBLIC ACCOUNTANTS

INDEPENDENT AUDITOR' S REPORT
To the Honorable Mayor and Members of the City Council
of the City of Lathrop
Lathrop, California
Report on the Audit of the Financial Statements
Opinions
We have audited the financial statements of the governmental activities, the business - type activities, each major fund, and the aggregate remaining fund information of the City of Lathrop ( City), as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise City' s
basic financial statements as listed in the table of contents.

In our opinion, the accompanying financial statements present fairly, in all material respects, the respective financial position of the governmental activities, the business - type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2023, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America ( GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor' sResponsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Responsibilities of Management for the Financial Statements The City' s management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City' s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

Address: 2855 Teeyrapn Avenue: Suite 312 Berkeley, CA ) 4705 • Phone: 510. 768. 8251 • Fax: 510. 768.! 324) To the Honorable Mayor and Members of the City Council
of the City of Lathrop
Lathrop, California

Page 2 ends

Auditor' sResponsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor' sreport that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS, we:

Exercise professional judgment and maintain professional skepticism throughout the audit.

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City' s
internal control. Accordingly, no such opinion is expressed.

Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.

Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City' s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control - related matters that we identified during the audit.

Required Supplementary Information
Accounting principles generally accepted in the United States of America require discussion and analysis, budgetary comparison schedules for the General Fund and that
major
the
special
management' s
revenue
funds, and the required pension and OPEB schedules on pages 5- 19 and 90- 102 be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the 2 To the Honorable Mayor and Members of the City Council of the City of Lathrop
Lathrop, California

Page 3 ends

United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management' sresponses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City' s
basic financial statements. The combining General Fund statements and budgetary comparison schedules, combining and individual nonmajor fund statements, and the budgetary comparison schedules for the major capital projects funds and nonmajor governmental funds are presented for purposes of additional analysis and are not a
required part of the basic financial statements.

The General Fund statements and budgetary comparison schedules, combining and individual nonmajor fund statements, and the budgetary comparison schedules for the major capital projects funds and nonmajor governmental funds are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the General Fund statements and budgetary comparison schedules, combining and individual nonmajor fund statements, and the budgetary comparison schedules for the major capital projects funds and nonmajor governmental funds are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Information
Management is responsible for the other information included in the annual comprehensive financial report. The other information comprises the information included in the annual comprehensive financial report but does not include the financial statements and our auditor' sreport thereon. Our opinions on the financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated February 27, 2024 on our consideration of the City' sinternal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The 3 To the Honorable Mayor and Members of the City Council of the City of Lathrop
Lathrop, California

Page 4 ends

purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City' s internal control
over financial reporting and compliance.

Bil. 4A.,,, d.

Badawi & Associates, CPAs
Berkeley, California
February 27, 2024
4 February 27, 2024
Department of Finance
390 Towne Centre Drive
Lathrop, California 95330
209- 941- 7320
www. ci. lathroo. ca. us

MANAGEMENT' SDISCUSSION AND ANALYSIS
The Management' s
Discussion and Analysis (" MD& A") provides an overview of the City of Lathrop' s City') activities and financial performance for the year ended June 30, 2023. Readers are encouraged to read the MD& A in conjunction with the basic financial statements that immediately follow, along with the letter of transmittal at the beginning of the Introductory Section and other portions of the Annual Comprehensive Financial Report (" ACFR').

FINANCIAL HIGHLIGHTS
The government - wide statement of net position for the City' s governmental and business - type activities indicates that as of June 30, 2023, total assets and deferred outflows of resources exceed total liabilities and deferred inflows of resources by $ 785. 4million. Of this amount, governmental actives accounts for $ 505. 3 million and business -type activities accounts for $ 280. 1 million. In addition, the City' srestricted net position totals $ 126. 4 million 125. 0 million for governmental activities and $ 1. 4 million for business -type activities) based on restrictions imposed by the enabling legislations or debt covenants. Lastly, net position of 526. 8 million is the City' s net investment in capital assets, which includes $ 320. 5 million from governmental activities and $ 206. 3 million from business type activities.

The net positon increased by $ 122. 5 million or 18. 5
percent during FY 2023 to $785. 4 million
from $ 662. 9 million. Governmental activities accounted for $ 86. 5 million increase and business -type activities accounted for $36. 0 million increase. Both increase were due to the acceptance of completed development infrastructure.

Governmental funds reported a combined ending fund balance of $ 188. 5 million at June 30, 2023, which is $ 16. 2 million or 9. 4 percent higher than the June 30, 2022 balance. The change is attributable to an increase in the General Fund of $6. 4 million, the Building Safety and Inspection Fund of $ 3. 0 million, the Streets and Roads Fund of 0. 3 million, the General CIP Projects Fund of $9. 5 million, the Nonmajor Governmental Funds of $7. 5 million and offset by decreases in the Capital Facility Fees Fund of $10. 5 million.

Unassigned fund balance of governmental funds is $ 5. 7 million, which is 3. 0 percent of the combined governmental fund balances as of June 30, 2023.

Total Tong -term liabilities increased by $ 3. 5 million to $ 28. 5 million, which represents an increase of 14. 0 percent compared to $ 25. 0 million at June 30, 2022. The primary factors leading to the increase in long- term liabilities for governmental activities of $5. 9 million was due to the increases in net pension liability of $ 4. 3 million, net Other Post -Employment Benefits (" OPEB") liability of $ 1. 0 million, and long- term net obligations of $0. 6 million. The primary factor leading to the decrease in long- term liabilities for business - type activities of

2. 4 million was a result of an increase of net pension liability of $0. 7 million, and net OPEB liability by $ 0. 2 million, offset by a decrease in long- term obligation of $3. million. 5 OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis introduce the City' s basic financial statements, which are comprised of four components:

Government -wide Financial Statements
Fund Financial Statements
Notes to Basic Financial Statements
In addition, this report contains required and other supplementary information.

GOVERNMENT - WIDE FINANCIAL STATEMENTS
Government - wide Financial Statements provide readers with a broad overview of the City' sfinances that include two different views of the City' s financial position. The government -wide financial statements provide both long- term and short- tem information about the City' s overall financial status.

The statement of net position presents information on all assets, deferred outflows of resources, liabilities, and deferred inflows of resources. The difference between total assets and deferred outflows of resources and total liabilities and deferred inflows of resources is the City' s net position.

Over time increases or decreases in net position may serve as a useful indicator of whether the City' s financial position is improving or deteriorating.

The statement of activities presents information showing how the net positions changed during the most recent fiscal year. All changes in net positon are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will result in cash flows in future fiscal periods. Examples include revenues pertaining to uncollected taxes and expenses pertaining to earned but unused vacation and other leaves.

Both government -wide financial statements address functions principally supported by taxes and intergovernmental revenues (" governmental activities") and other functions that intend to recover all or in part a portion of their costs through user fees and charges (' business -type activities"). The governmental activities of the City include general government, public safety, capital facilities, building safety and inspection, general capital projects and street capital projects. The City' s business -type activities include water system and wastewater system.

FUND FINANCIAL STATEMENTS
Fund financial statements report information about groupings of related accounts used to maintain control over resources segregated for specific activities or objectives. As do other state and local governments, the City uses fund accounting to ensure and demonstrate finance -related legal compliance. Each City fund falls into one of three categories: governmental funds, proprietary funds, or fiduciary funds.
6 Governmental funds account for essentially the same functions reported as governmental activities in the government -wide financial statements. However, unlike the government -wide financial statements, governmental funds financial statements focus on near -term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating the City' scapacity to finance its programs in the near future.

Because the focus of governmental funds is narrower than that of the government - wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government - wide financial statements. By doing some readers may better understand the long- term impact of the government' snear -term financing decisions. Both the Governmental funds balance sheet and statement of revenues, expenditures and changes in fund balances provide a reconciliation to facilitate comparison between governmental funds and governmental activities.

The governmental funds balance sheet and statement of revenues, expenditures and changes in fund balances present information separately for the General Fund, Capital Facilities Fee Fund, Building Safety and Inspection Fund, Streets and Roads Fund, and General CIP Projects Fund which are all classified as major funds. These statements also report several individual governmental funds classified as nonmajor funds such as special revenue funds and capital project funds, which are aggregated into a single presentation. Individual fund data for each of the nonmajor governmental funds is provided in the form of combining statements elsewhere in this ACFR.

Proprietary funds generally account for services charged to external or internal customers through fees. Proprietary funds provide the same type of information as shown in the government -wide financial statements for business -type activities, only in more detail. The City accounts for its water system and wastewater system in proprietary funds.

Fiduciary funds account for resources held for the benefit of parties outside of the governments in a similar manner as that of proprietary funds. The government - wide financial statements do not include fiduciary funds as their resources are not available to support City programs.

The financial statements also include notes that explain the information in the financial statements and provide more detailed data. In addition to the required elements, combining statements are presented that provide details about the City' s non -major governmental funds and agency funds, each of which are presented in consolidated columns in the basic financial statements.

Notes to Basic Financial Statements provide additional information that is essential to a full understanding of the data provided in the government - wide fund financial statements.

Required Supplementary Information includes the budgetary schedules for the General Fund, Capital Facility Fees Fund, and Building Safety and Inspection Fund. In addition, pension and other postemployment healthcare schedules present the City' s progress toward funding its obligations to provide future pension and other postemployment healthcare benefits for its active and retired employees.

Combining and individual fund statements and schedules provide information for nonmajor governmental funds, internal service funds, and fiduciary funds and are presented immediately following the required supplementary information.
7 GOVERNMENT -WIDE FINANCIAL ANALYSIS
Analysis of Net Position
As noted earlier, net position may serve as a useful indicator of a government' sfinancial position. As of June 30, 2023 the City' stotal assets and deferred out flows of resources exceed total liabilities and deferred inflows of resources by $785. 4 million. The following table is a condensed summary of the City' s net positon for governmental and business type activities:

City of Lathrop Summary of Net Position
For the Fiscal Years Ended June 30, 2022 and 2023
in Thousands)
Governmental Business -Type Total Primary
Activities Activities Government
2022 2023 2022 2023 2022 2023
Total
Percent
Change
Assets:

Capital assets
Other assets
Total Assets
Deferred Outflows
Pension
OPEB
Total Deferred Outflows
Liabilities:

Current liabilities
Long- term liabilities
Net Pension liability
Net OPEB liability
Total Liabilities
253, 479 $ 324, 000 $ 190, 82 $ 221, 456 $ 444, 281 $ 545, 46 198, 957 212, 777 76, 957 79, 363 275, 914 292, 140

22. 77%

5. 88%
452,36 536, 777 267, 759 300, 819 720, 195 837, 596 16. 30% 2, 329 4, 371 316 636 2, 645 5, 007
569 1, 011 90 160 659 1,71

89. 30%

77. 69%
2, 898 5, 382 406 796 3,04 6, 178 86. 99%
22, 361 22, 587 3, 987 6, 581 26, 348 29, 168
4, 970 5, 487 16, 824 13, 634 21, 794 19,21
2, 653 6, 972 314 994 2, 967 7, 966
214 1, 243 34 196 248 1, 439

10. 70%

12. 26%
168. 49%
480. 24%
30, 198 36, 289 21, 159 21, 405 51, 357 57, 694 12. 34% Deferred Inflows
Pensions 2, 489 335 287 53 2, 776 388
OPEB 828 233 131 37 959 270

86. 02%

71. 85%
Total Deferred Inflows 3,17 568 418 90 3, 735 658
Net Position:

Net Investment
in Capital Assets
Restricted
Unrestricted
Total Net Position

82. 38%
250, 65 320, 475 174, 059 206,99 424, 664 526, 774
122, 950 125, 033 1, 653 1, 409 124, 603 126, 442
47, 696 59, 793 70,85 72, 412 118, 41 132, 205

24. 04%

1. 48%

11. 58%
421, 251 $ 505, 301 $ 246, 497 $ 280, 120 $ 667, 748 $ 785, 421 17. 62% 8 At June 30, 2023, the City reported positive balances in net position on a total basis. Net investment in capital assets ( infrastructure, land, buildings, other improvements, vehicles, equipment, lease assets and SBITA Tess outstanding debt used to acquire assets and deferred inflows and outflows related to debt) of $ 526. 8 million comprises 67. 1 percent of the City' stotal net position. These capital assets facilitate providing services to the Lathrop community, but are not liquid, and therefore are not available for future spending. During FY 2023 net investment in capital assets increased $ 102. million primarily due to an increase of $ 69. 9 million from governmental activities and an increase of

32. 2 million from business -type activities. A portion of the City' s net positon, $126. 4 million or 16. percent, is subject to legal restriction for their use, including $ 125. 0 million in governmental activities and $ 1. 4 million in business - type activities. Of the total net position at June 30, 2023, a balance of 132. 2 million or 16. 8
percent represents unrestricted net positon, which comprises a balance of

59. 8 million for governmental activities and a balance of $72. 4 million for business -type activities.

During FY 2023, the City' s total net positon increased by $ 122. 5 million. Notable changes in the statement of net positon between June 30, 2023 and June 30, 2022 include:

Assets
Capital assets increased by $ 101. 2 million compared to the prior fiscal year. Governmental capital assets increased by $70. 5 million and business -type capital assets increased by $30. 7 million. The increase is result of the addition of major infrastructure in both Governmental and Business - type funds. Governmental capital assets recorded additions of $ 82. 3 million, which included $ 7. 8 million in capital projects, $ 1. 4 million in right -to -use assets, $2. 3 million in property acquisitions, $ 1. 5 million in vehicles and equipment, $ 9. 6 million in improvements other than building, and $ 59. 7 million in donated developer infrastructure. Business -type capital assets recorded additions of $36. 4 million, which included $ 11. 3 million in water system improvements, $ 18. 5 million in sewer system improvements, $ 6. 3 million in sewer capital projects, and $ 0. 3 million in vehicles and equipment, offset by depreciation of $5. 8 million.

Current and other assets increased by $17. million or 5. 9 percent due to an increase of $13. 8 million in governmental activities and an increase of $2. 4 million in business -type activities.

The increase in governmental activities is mainly due to an increase in cash and investments held with fiscal agents from higher sales and property tax revenues. The increase in current assets for business - type activities is mainly due to higher cash and investments resulting from more revenue received through charges for services and capital donations.

Liabilities
Total long- term liabilities increased by $ 3. 5 million to $ 28. 5 million at June 30, 2023, which represents an increase of 14. 0 percent compared to $ 25. 0 million at June 30, 2022. The primary factors leading to the increase in long- term liabilities for governmental activities of

5. 8 million was due to the increases in net pension liability by $4. 3 million, net OPEB liability of $1. 0 million, and other long term liabilities of $0. 5 million. The primary factor leading to the decrease in business -type activities of $2. 4 million is a result of increases in net pension liability of $ 0. 7 million and net OPEB liability of $ 0.1, offset by a decrease in other long term liabilities $ 3. 2 million attributed to a reduction in compensated absences.

Net pension liability increased $ 5. 0 million since the prior measurement date, primarily due to investments help by CaIPERS decreasing year over year from 2021 to 2022.

Net OPEB liability increased by $ 1. 2 million since the prior measurement date, primarily due to investments help by CaIPERS decreasing year over year from 2021 to 2022. 9 Current and other liabilities increased $ 2. 8 million or 10. 7 percent due to an increase in business -type activities.

Deferred Outflows/ Inflows
Deferred outflows of resources increased $ 2. 9 million to $ 6. 2 million at June 30, 2023, which represents an increase of 87. 0 percent compared to $ 3. million at June 30, 2022. The primary factor leading to the increase in deferred outflows is an increase of $ 2. 4 million in pension and $ 0. 5 million in OPEB. The increases are a direct result of adding more than 50 employees to start the City' s police department.

Deferred inflows decreased by $3. 1 million to $ 0. 7 million at June 30, 2023, which represents a decrease of 82. 4 percent compared to $ 3. 1 million at June 30, 2022. The decrease of deferred inflows was primarily due to the decrease in deferred inflows related to pensions of

2. 4 million and OPEB of $0. 7 million.

Net Position
Unrestricted net position for governmental activities increased by $ 12. million or 25. 4 percent with an ending balance of $ 59. 8 million at June 30, 2023. For business -type activities, unrestricted net position increased by $ 1. 6 million or 2. 3 percent with a balance of $ 72. 4 million at June 30, 2023.
10 Analysis of Activities
The following table indicates the changes in net position for governmental and business -type activities:

City of Lathrop Changes in Net Position
For the Fiscal Years Ended June 30, 2022 and 2023
in Thousands)
Revenues:

Program revenues:

Charges for services
Operating grants and contributions
Capital grants and contributions
General revenues:

Sales and use taxes
Property taxes
Franchise taxes
Transient occupancy taxes
Other taxes
Other miscellaneous
Unrestricted investment earnings
Total Revenues
Expenses:

Governmental activities:

General government
Community development
Public safety
Public works
Culture and leisure
Interest on long- term debt
Business -type activities:

Water enterprise
Sewer enterprise
Total expenses
Excess before transfers
Transfers
Change in Net Position
Net Position - Beginning
Prior Period Adjustment
Net Position, Beginning, Restated
Net Position - Ending
Governmental Activities
Governmental
Activities
2022 2023
Business -Type
Activities
2022 2023
Total Primary
Government
2022 2023
Total
Percent
Change
20, 692 18, 476 19, 900 21, 194 40, 592 39, 670 2.7%
5, 236 7, 477 5, 236 7, 477 42. 80%
25, 390 66, 235 29, 098 25, 390 95, 333 275. 47%
22, 602 21,85 22, 602 21,85 5. 83%
9, 738 10, 510 9, 738 10, 510 7. 93%
1, 640 2,85 1, 640 2,85 39.3%
1, 041 1, 027 1, 041 1, 027 1.34%
32, 094 18, 229 9, 461 5, 839 41, 555 24, 068 42. 08%
1, 344 381 4, 938 687 6, 282 1, 068 83. 00%
2, 101) 3, 901 217 953 1, 884) 4, 854 357. 64%
117, 66 149, 806 34, 516 57, 771 152,92 207, 57 36.9%
6, 994 9, 351 6, 994 9, 351 33. 70%
1, 805 1, 537 1, 805 1, 537 14. 85%
11, 628 15, 351 11, 628 15, 351 32. 02%
14, 711 36, 027 14, 711 36, 027 144. 90%
11, 559 3, 999 11, 559 3, 999 65. 40%
234 226 234 226 3.42%
7, 099 9, 130 7, 099 9, 130 28. 61%
7,07 9, 457 7,07 9, 457 22. 71%
46, 931 66, 491 14, 806 18, 587 61, 737 85, 078 37. 81% 70,45 83, 315 19, 710 39, 184 90, 455 122, 499 35. 43%
5, 818) 3, 144 5, 818 3, 144) 0.0%
64, 927 86, 459 25, 528 36, 040 90, 455
r
122, 499 35. 43%
356,22 421, 251 220, 969 246, 497 577, 291 667, 748 15. 67% 2, 410) 2, 417) 4, 827) 0.0%
356,22 418, 841 220, 969 244, 080 577, 291 662, 91 14. 83% 421, 251 505, 301 246, 497 280, 120 667, 746 785, 420 17. 62% The change in net position for governmental activities increased by $21. 6 million during FY 2023 from

64. 9 million to $ 86. 5 million. Total expenses increased by $ 19. 6 million and revenues including transfers increased by $ 41. 1 million. The major factors contribution to the increase in net position in FY 2023 compared to FY 2022 are as follows:
11 Revenues
Fees, fines and charges for service decreased by $ 0. 9 million or 2. 3 percent, mainly due to developer contributions of completed infrastructure.

Operating grants and contributions decreased by $8. 7 million or 13. percent mainly due to a decrease in the Capital Facilities Fund as large industrial buildings pulled permits and paid fees in the prior fiscal year.

Capital grants and contributions increased by $ 69. 9 million or 275. 5 percent mainly due to
the donation of infrastructure from developers. In FY 2023 the City accepted $ 88. 6 million in infrastructure assets.

Other revenues and transfers decreased $ 15. 9 million or 19. 6 percent mainly due to an increase of $6. 7 million in investment earnings, driven by higher interest income received as a result of higher interest rates. Additionally, property tax revenue increased by $0. 8 million and franchise fees increased by $0. 6 million both due to increases in homes sold in the fiscal year. These increases were offset by decreases of $ 1. 3 million in sales tax revenue due to lower gas prices in FY 2023, which directly impacts the City' s sales tax receipts, a decrease of

17. 5 million in other taxes due to in the prior fiscal year two large industrial buildings pulled permits, and a decrease of $5. 2 million in other miscellaneous fees due to the City receiving a onetime arrearage grant from the state for past due water and sewer utility bills.

Expenses
General government expenses increased $ 2. 4 million or 33. 7 percent during FY 2023. This increase is due to the addition of three position in various departments and an increase Information Services Department expenses to support the addition of the new police department.

Public safety expenses increased $ 3. 7 million or 32. 0 percent primarily due to the additions of officers to support our new police department.

Community services expenses decreased by $0. 3 million or 14. 9 percent mainly due to the completion of the City' s
General Plan update that was expensed in the prior fiscal year.

Public Works expenses increased $ 21. 3 million or 144. 9 percent primarily due to the
reallocation of maintenance staff from the culture and leisure department to the public works department. In addition, four new staff members were added to the department.

Culture and leisure expenses decreased by $ 7. 6 million or 65. 4percent primarily due to the reallocation of maintenance staff to the public works department.

Water enterprise expenses increased by $ 2. 0 million or 28. 6percent primarily due to increases in maintenance and operation costs and depreciation expense.

Sewer enterprise expenses increased by $ 1. 8 million or 22. 7 percent mainly due to increases
in maintenance and operation expenses.
12 The chart below shows the primary components of governmental activities revenue sources for FY 2023. Of the $ 149. 8 million in total revenues ( not including transfers) generated by governmental activities, 82 percent is attributable to four categories: capital grants and contributions ( 44 percent), sales and use tax ( 14 percent), other taxes ( 12 percent) and charges for service ( 12 percent).

GOVERNMENTAL ACTIVITIES
FY 2023 Revenues by Source
Capital grants and
contributions
44%
Operating grants and
contributions
5%
Charges for services
12%
Unrestricted
investment earnings
3%
Other miscellaneous
0%
Other taxes
12%
Sales and use taxes
14%
Property taxes
7%
ranchise taxes
2%
Transient occupancy
taxes
1%
The chart below shows the major categories of the FY 2023 expenses for governmental activities. Of the $ 66. 5 million in total expenses incurred by governmental activities, 92. 0 percent is attributable to four categories: public safety ( 52 percent), public works ( 17 percent), general government ( 15 percent) and culture and leisure ( 8 percent).

GOVERNMENTAL ACTIVITIES
FY 2023 Expense by Source
Public safety
52%
Community
development
6%
General government
15%
Interest on long- term
debt
2% Culture and leisure
8%
Public works
17%
13 Business -type Activities
Business - type activities net positon increased by $ 33. 6 million or 13. 6 percent to $ 280. 1 million in FY 2023.

The notable components of the changes in net position for business -type activities in FY 2003 are:

Water net position increased by $ 14. million or 16. 4
percent from $ 86. 0 million to $ 100. million.

The increase is primarily due to capital infrastructure contributions of $ 10. 8 million. The largest portion of net positon, $60. 0 million or 59. 9 percent, was its net investment in capital assets ( e.g. land, buildings, and infrastructure). Approximately $ 38. 6 million or 38. 6 percent of the total net position, constitutes unrestricted net position, which may be used to finance day- to- day operations without constraints.

Operating revenues increased by $0. 3 million primarily due to an increase in the customer base due to new construction. Operating expenses of $8. 7 million increased by $ 2. 1 million or 31. 8 percent largely due to an increase in surface water supply costs and depreciation expense.

Sewer net position increased by $ 22. 0 million or 13. 9 percent from $ 158. million to $ 180. million.

The increase is primarily attributed to capital infrastructure contributions of $18. 3 million. The largest portion of net positon, $146. 3 million or 81. 2percent, was its net investment in capital assets ( e.g. land, buildings, and infrastructure). Approximately $ 33. 8 million or 18. 8 percent of the total net
position, constitutes unrestricted net position, which may be used to finance day- to- day operations without constraints.

FINANCIAL ANALYSIS OF THE CITY' SFUNDS
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance - related legal requirements.

As of June 30, 2023, the City' s governmental funds reported combined fund balances of $ 188. 5 million compared to $ 172. 4 million in FY 2022. The governmental fund balances are categorized as nonspendable, restricted, committed, assigned, or unassigned.

9. 8 million consist of nonspendable fund balance related to advances and deposits long- term in nature that are not intended to convert into cash and do not represent currently available resources.
125. 0 million is reported as restricted fund balance that includes restrictions imposed by external parties or enabling legislation. This amount includes unspent grant revenues and restricted tax revenues.

48. 0 million is reported as committed fund balance that has been limited by formal Council action for a specific purpose.

5. 7 million is reported as unassigned fund balance that represents the residual classification for the City' s General Fund and includes all spendable amounts not contained in other classifications.
14 General Fund
The General Fund is the chief operating fund of the City. At June 30, 2023 the General Fund unassigned fund balance is $ 6. 1 million or 410. 8percent of the $ 56. 4 million total General Fund balance. Comparing unassigned fund balance and total fund balance to total fund expenditures may be useful as a measure of the General Fund' s
capacity to meet future obligations. At June 30, 2023
unassigned fund balance represented 21. 5 percent of total General Fund expenditures of $ 28. 3 million, while total fund balance represents 199. 3 percent of total General Fund expenditures. At June 30, 2022, the same measures were 27. 7percent and 256. 8 percent, respectively.

The General Fund ending fund balance increased by $ 6. 5 million from $ 49. 9 million to $ 56. 4 million at June 30, 2023.

In FY 2023, the General Fund revenues of $44. 7 million were $7. million or 20. 8 percent higher than FY 2022 revenues of $ 37. 0 million. Use of money and property revenue increased $ 4. 8 million attributed to increases investment earnings, driven by higher interest income received as a result of higher interest rates and the fair value adjustment for FY 2023. Intergovernmental revenue increased

3. 6 million as a result of increased motor vehicle in lieu payments. Revenue increases were offset by a decrease of $0. 2 million in sales tax revenue received and $ 0. 5 million in miscellaneous revenue.

FY 2023 General Fund expenditures of $28. 3 million were $ 7. million or 37. 4 percent higher than FY 2022 expenditures of $ 20. 6 million. The increase was primarily due to an increase of $2. 3 million in general government, $ 3. 5 million in public safety and $ 1. 2 million in capital outlay, which was a direct result of hiring additional staff and purchasing public safety equipment to support the City of Lathrop new police department.

Capital Facility Fees Fund
The Capital Facilities Fees Fud accounts for fees collected for traffic mitigation ( including regional traffic), Storm Drain, culture and leisure, city services and administration. At June 30, 2023, the fund had an ending fund balance of $44. 5 million, which is $ 3. 0 million or 7. 2 percent higher the FY 2022.

The monies in this fund are collected from developers of specific projects.

Building Safety and Inspection Fund
The Building Safety and Inspection Fund has an ending fund balance $ 12. 0 million as of June 30, 2023. The monies in these funds are collected from cost recovery fee sources for specific projects and operations associated with the fee nexus. The restricted fund balance can only be use to fund specific expenses in future fiscal years.

Streets and Roads Fund
The Streets and Roads Fund accounts for capital project expenditures related to streets and roads occurring over more than one fiscal year. As of June 30, 2023 the fund balance of the Streets and Roads fund is $ 11. 3 million.

General CIP Proiects Fund
The General CIP Projects Fund accounts for capital projects funded by the General Fund occurring over more than one fiscal year. The fund balance of the General CIP project fund at June 30, 2023 is $ 18. 5 million,
15 Proprietary Funds
The City' s proprietary funds provide similar information to that which is found in the government - wide financial statements, but in more detail. Each fund' sfinancial transactions, both near -term and historic, are provided in the statement of net position and the statement of revenues, expenses, and changes in net position. In addition, these proprietary funds also present a statement of cash flows.

In FY 2023, the water utility enterprise fund increased its net position from $ 86. 0 million to $ 100. million. Unrestricted net assets at the end of the fiscal year amounted to $ 38. 6 million, and are available for future capital water system improvements. $ 60. 0 million of the Water Fund' s net position are net investment in capital assets and are not available for liquidation to support operations. The remaining $ 1. 4 million is restricted to satisfy debt service obligations and covenants.

In FY 2023, the sewer utility fund increased its net position from $ 158. million to $ 180. million.

Unrestricted net position at the end of the fiscal year amounted to $ 33. 8 million and is available for future capital sewer system improvements. $ 146. 3 million of the Sewer Fund' s net position is net investment in capital asset and are not available for liquidation to support operations.

Other factors concerning the finances of these funds have already been reviewed in the discussion of the City' s business -type activities. The capital assets section on the following pages will provide additional discussion and analysis of the business -type financial activities.

GENERAL FUND BUDGETARY HIGHLIGHTS
Staff submits a balanced operating and capital budget biennially to the City Council prior. The Biennial FY 2021/022 and FY 2022/023 was presented to Council in June of 2021.

Over the course of the year, the City Council revised the City budget with adjustments that are comprised within the following two categories:

Changes made in the mid -year report to adjust revenues, augment current year expenditure appropriations, and establish or increase designation of fund balance.

Other revenue adjustments and expenditure appropriations approved after the original budget is adopted, and before or after the mid -year report is approved.

During the year ended June 30, 2023, there was a $ 5. 7 million increase in budgeted revenues between the orginal and final amended operating budget for the General Fund. The increase in budgeted revenues was due to an increase in property and sales tax revenues of $5. 6 million.

Actual budgetary expenditures of $28. 3 million were $ 6. 1 million less than the amended budget as of June 30, 2023 and $ 6. 0 million less than the original budget due to planned expenduters not occurring in the year ended June 30, 2023.

CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets
The City' s capital assets net of accumulated depreciation, for its governmental and business -type activities together amounted to $ 545. million at June 30, 2023. This investment includes land, infrastructure, improvements, vehicles, equipment, and construction in progress. For the year ended 16 June 30, 2023, net capital assets increased $ 101. 2 million ($ 70. 5 million in governmental activities and $ 30. 7 million in business -type activities) compared to net capital assets at June 30, 2022. The increase in both governmental activities and business - type activities is primarily due to the acceptance of infrastructure and improvements from development.

Total construction in progress increased by $ 11. 9 million from $ 31. 62 million at June 30, 2022 to

43. 5 million at June 30, 2023. Construction in progress for governmental activities increased by

7. 8 million primarily due to $ 12. 6 million additions in general CIP projects and $ 4. 8 million net of projects being transferred into service. Business - type activities contributed an increase of $4. 0 million to the total CIP as additions to the Water and Sewer Systems totaling $ 7. 2 million were offset by

3. 2 million in projects that were completed and placed into service. The completed Water System projects include water meter improvements and water system repairs. The completed projects for the Sewer System include recycled water program and recycled water expansion.

The City records infrastructure assets at historical costs in the government -wide financial statement and depreciates assets from acquisition date to the end of the current fiscal year as required by GASB Statement No. 34. For governmental fund financial statements recording purposes, capital asset purchases are recorded as expenditures, rather than capitalizing and recording related depreciation.

Capital assets, net of depreciation for governmental and business -type activities in the government - wide financial statements are presented below to illustrate changes between FY 2022 and FY 2023 in thousands):

For the Fiscal Years Ended June 30, 2022 and 2023
in Thousands)
Governmental Business - Type Total Primary
Activities Activities Government
2022 2023 2022 2023 2022 2023
Land $ 10, 600 $ 12, 887 $ 3, 565 $ 3, 565 $ 14,65 $ 16, 452 Construction in Progress 21, 012 28, 784 10, 635 14, 679 31, 647 43,63 Buildings 20, 708 20, 122 0 0 20, 708 20, 122
Improvements other than building 55, 425 60, 971 176, 01 202, 513 231, 486 263, 484 Infrastructure 143,54 196, 98 0 0 143,54 196, 98
Equipment and vehicles 2, 451 3, 172 541 699 2, 992 3, 871 Rigt to use Assets 129 400 0 0 129 400
SBITA 0 695 0 0 0 695
Total Capital Assets 253, 479 323, 999 190, 82 221, 456 444, 281 545, 45 Additional information about the City' scapital assets can be found in the Notes to Basic Financial Statements, Note 4.

Debt Administration
The City' slong- term debt service obligation include revenue bonds, lease revenue bonds and private placement debt. During the current fiscal year, the City' s outstanding long- term debt decreased by

1. 9 million to $ 17. 6 million, comprising $ 0. 3 million in governmental activities and $ 1. 6 million in business -type activities. The decrease of in both governmental and business -type activities is a result of debt service payments and no new bond issuances.
17 For the Fiscal Years Ended June 30, 2022 and 2023
in Thousands)
Governmental Business -Type Total Primary
Activities Activities Government
2022 2023 2022 2023 2022 2023
Revenue Bonds - Water $ - $ - $ - $ $
2017 Bank Loan - 8, 178 7, 462 8, 178 7, 462
State Revolving Fund Loan 5,54 5, 071 5,54 5, 071
Compass Bank Loan - 3, 010 2, 623 3, 010 2, 623
Capial Lease - City Hall 2, 745 2, 430 2, 745 2, 430
Total Capital Assets 2, 745 2, 430 16, 742 15,56 19, 487 17, 586 Additional information about the City' slong- term outstanding debt can be found in the notes to the Basic Financial Statements, Note 6.

ECONOMIC FACTORS AND NEXT YEAR' SBUDGETS AND RATES
The City Council considered many factors when setting the Fiscal Year 2023/4 budget. The City primarily relies on property tax and sales tax revenues to provide services and amenities to the community. Lathrop' s population has experienced significant growth. Just last year, the City experienced an 11. percent increase in its population making it one of the fastest growing cities in California. While higher population is an exciting sign of growth, the City also recognizes some of the challenges such growth brings in the planning and management of serving our new residents. With City Council' sguidance, the City has built strong financial reserves to draw from in unknown times, we have been able to maintain our sound financial position.

In March of 2021, the City Council approved moving forward to establish a new City of Lathrop Police Department. This important decision has not been made quickly; in fact, years of financial analysis have indicated the City can save money and provide more staff in police services tailored to meet the needs of the community. The City Council' sdecision reflects a commitment to take action when it is in the long- term interest of our citizens.

Over the past decade, the City Council and City staff have focused on ensuring a sustainable economic future for the City of Lathrop supporting steady growth projections for the future. The City has a goal to provide an environment for strong industrial, commercial and residential growth that has resulted in a solid financial foundation. The California State Auditor Office, in its most recent report, has ranked Lathrop in the top 3% of fiscally sound cities, out of 471 cities throughout California. This has been possible because of stability in City Hall staffing, with a skilled and committed City staff team. These factors have positioned the City to be able to stand up a new Police Department to provide services that continue to meet the needs of residents, businesses, schools, community groups and visitors in Lathrop in a cost- effective manner.

Building permit issuance by the City for new residential and commercial development is the key driver used to estimate various revenue streams. These revenues are deposited into various funds.

Examples of these revenues include: sales and use taxes on construction materials and equipment; capital facility fees charged to mitigate the impact of new development -driving a need for more parks and street capital investments; system development charges ( investment/ tapfees) assessed to finance future capital investment for water, sewer, and storm drainage systems. 18 As mentioned above, the level of single- family dwelling unit building permits issued, measured at 601 in FY 2023, this level exceeds the 334 issued years earlier in Fiscal Year 2006/ 07 during the height of the previous housing boom.

These major economic indicators were all considered when adopting the General Fund budget for FY 2023/4budget.

CONTACTING THE CITY FINANCIAL MANAGEMENT
This financial report is designed to provide our residents, taxpayers, customers, investors and creditors with a general overview of the City' s finances and to show the City' s accountability and transparency for the money it receives. If you have questions about this report or need additional financial information, contact the City of Lathrop - Finance Department, 390 Towne Centre Drive, Lathrop, California 95330, (209) 941- 7320.
19 This page intentionally left blank
20 BASIC

FINANCIAL STATEMENTS
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22 GOVERNMENT -WIDE

FINANCIAL STATEMENTS
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24 City of Lathrop
Statement of Net Position
June 30, 2023
Primary Government
Governmental Business - type
Activities Activities Total
ASSETS
Current assets:

Cash and investments $ 202, 815, 359 $ 76, 084,05 $ 278, 899, 364 Receivables:

Accounts ( net of allowance for uncollectibles) 7, 048, 548 3, 583, 748 10, 632, 296 Notes and loans 20, 350 - 20, 350
Accrued interest 414, 87 159, 43 574, 30
Internal balances 1, 873, 305 ( 1, 873, 305)
Restricted assets:

Cash with fiscal agent - 1, 408, 865 1, 408, 865
Prepaids 604, 565 604, 565
Total current assets 212, 776, 974 79, 362, 806 292, 139, 780 Noncurrent assets:

Capital assets:

Nondepreciable 41, 671, 142 18, 244, 833 59, 915,75
Depreciable 402, 113, 987 269, 829, 425 671, 943, 412
Less accumulated depreciation ( 119, 785, 130) ( 66,18, 534) ( 186, 403, 664) Total noncurrent assets 323, 999,99 221, 455, 724 545, 45, 723 Total assets 536, 776, 973 300, 818, 530 837, 595,03

DEFERRED OUTFLOWS OF RESOURCES
Deferred pension related items 4, 371,31 636, 750 5, 008,81 Deferred OPEB related items 1, 011, 762 159, 712 1,71, 474 Total deferred outflows of resources 5, 383, 093 796, 42 6, 179, 555

LIABILITIES
Current liabilities:

Accounts payable 10, 771, 449 3,28, 593 14,00, 042
Accrued liabilities 370, 077 370, 077
Accrued interest - 101, 245 101, 245
Unearned revenue 5, 214, 522 198, 000 5, 412, 522
Deposits payable 5, 754, 977 1, 038, 834 6, 793, 811
Due to other governments - 298, 77 298, 77
Long- term debt Si loans payable 320, 00 1, 615, 562 1, 935, 562 Leases payable 155, 512 155, 512
Total current liabilities 22, 586,37 6, 581, 021 29, 167, 558 Noncurrent liabilities:

Compensated absences 2, 438, 209 92, 848 2, 531, 057
Long- term debt & loans payable 2, 110, 000 13, 540, 667 15, 650,67 Leases payable 939, 279 - 939, 279
Net pension liability 6, 972, 342 994, 01 7, 966, 383
Net OPEB liability 1, 243,92 195, 874 1, 439, 166
Total noncurrent liabilities 13, 703, 122 14, 823, 430 28, 526,52 Total liabilities 36, 289, 659 21, 404,51 57, 694, 110

DEFERRED INFLOWS OF RESOURCES
Deferred pension related items 335, 177 52, 759 387, 936 Deferred OPEB related items 233, 798 37, 460 271,58
Total deferred inflows of resources 568, 975 90, 219 659, 14

NET POSITION
Net investment in capital assets 320, 475, 208 206,99, 495 526, 774,03 Restricted for:

Community development 1, 459, 853 1, 459, 853
Public safety 12, 304, 449 - 12, 304, 449
Culture and leisure 1, 734, 092 - 1, 734, 092
Public works 14, 482, 070 - 14, 482, 070
Capital projects 95, 052, 906 95, 052, 906
Debt service - 1, 408, 865 1, 408, 865
Unrestricted 59, 792, 854 72, 411, 962 132, 204, 816
Total net position $ 505, 301, 432 $ 280, 120, 322 $ 785, 421, 754 See accompanying Notes to Basic Financial Statements. 25 City of Lathrop
Statement of Activities
For the year ended June 30, 2023
Program Revenues
Operating Capital
Charges for Grants and Grants and
Functions/ Programs Expenses Services Contributions Contributions Total Governmental activities:

General government $ 9, 350, 898 $ 8, 753, 003 $ 5, 856,54 $ - $ 14, 609, 857 Public safety 15, 350, 996 51, 938 152, 771 204, 709
Community development 1, 537, 163 6, 041, 251 156, 900 6, 198,51 Culture and leisure 3, 999, 365 379, 681 - 5, 000 384, 681 Public works 36, 027, 481 3, 250, 469 1, 310, 731 66, 230, 438 70,91, 638 Interest on long- term debt 225, 835 - - -
Total governmental activities 66, 491, 738 18, 476, 342 7, 477, 256 66, 235, 438 92, 189, 036 Business - type Activities:

Water 9, 130, 486 10, 765, 615 - 10, 779, 611 21, 545, 226 Sewer 9, 457,06 10, 428, 292 - 18, 318, 755 28, 747, 047 Total business -type activities 18, 587, 892 21, 193, 907 29, 098, 366 50, 292,73 Total primary government $ 85, 079, 630 $ 39, 670, 249 $ 7, 477, 256 $ 95, 333, 804 $ 142, 481, 309 General Revenues:

Taxes:

Property taxes, levied for general purpose
Transient occupancy taxes
Sales taxes
Franchise taxes
Other taxes & assessments
Use of money and property
Other
Transfers
Total general revenues and transfers
Change in net position
Net position - beginning of year, as restated
Net position - end of year
See accompanying Notes to Basic Financial Statements. 26 Net ( Expense) Revenue
and Changes in Net Position
Governmental Business - Type
Activities Activities Total
5, 258, 959 $ - $ 5, 258, 959
15,46, 287) - ( 15,46, 287)
4, 660, 988 - 4, 660, 988
3, 614,84) ( 3, 614,84)
34, 764, 157 - 34, 764, 157
225, 835) - ( 225, 835)
25, 697, 298 25, 697, 298
12, 414, 740 12, 414, 740
19, 289, 641 19, 289, 641
31, 704, 381 31, 704, 381
25, 697, 298 31, 704, 381 57, 401, 679
10, 509, 687 10, 509, 687
1, 027,15 1, 027,15
21,85, 429 21,85, 429
2,85, 062 2,85, 062
18, 228, 764 5, 839, 401 24, 068, 165
3, 901, 381 952, 746 4, 854, 127
381, 860 687, 317 1, 069, 177
3, 143, 911 ( 3, 143, 911)
60, 763, 109 4, 335, 553 65, 098, 662
86, 460,07 36, 039, 934 122, 500, 341
418, 841, 025 244, 080, 388 662, 91, 413
505, 301, 432 $ 280, 120, 322 $ 785, 421, 754
See accompanying Notes to Basic Financial Statements. 27 This page intentionally left blank
28 FUND

FINANCIAL STATEMENTS
Governmental Fund Financial Statements
Proprietary Fund Financial Statements
Fiduciary Fund Financial Statements
29 This page intentionally left blank
30 City of Lathrop
Major Governmental Funds
Year Ended June 30, 2023
The funds described below were determined to be Major Funds by the City in fiscal year 2023. Individual non -major funds may be found in the Supplementary Information section

GENERAL FUND
This fund accounts for all financial resources except those accounted for in another fund. It is the general operating fund of the City.

CAPITAL FACILITY FEE SPECIAL REVENUE FUND
To account for the financial resources associated with the capital facility fees for Traffic Mitigation ( includes Regional Traffic), Storm Drain, Culture and Leisure, City Service, and Administration

BUILDING SAFETY & INSPECTION SPECIAL REVENUE FUND
This fund accounts for building safety and inspection permit fee revenue and activity.

STREETS AND ROADS CAPITAL PROJECTS FUND
To account for capital project expenditures related to streets and roads occurring over more than one fiscal year

GENERAL CIP PROJECTS CAPITAL PROJECTS FUND
To account for the expenditure of funds for projects funded from the General Fund 31 City of Lathrop
Balance Sheet
Governmental Funds
June 30, 2023
Special Revenue Funds
Capital Project
Funds
Building Safety &
General Fund Capital Facility Fees Inspection Streets and Roads ASSETS
Cash and investments $ 45, 283, 863 $ 57, 160, 812 $ 15, 053, 481 $ 11, 747, 481 Receivables:

Accounts ( net of allowance for uncollectibles) 4, 340, 483 4, 027 - 1, 090 Notes and loans - - - -
Accrued interest 97, 809 114, 051 30, 665 20, 364
Due from other funds 14, 604 - -
Prepaids 394, 832 -
Advances to other funds 9, 371,05 -
Total assets

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
59,02, 896 $ 57, 278, 890 $ 15, 084, 146 $ 11, 768, 935 Liabilities:

Accounts payable $ 934, 372 $
Accrued liabilities 370, 077
Unearned revenue 740, 865
Deposits payable 1, 098, 256
Due to other funds
Advances from other funds
Total liabilities
Fund Balances:
5, 255, 510 $
7, 498, 000
358, 453 $ 480, 147
2, 691,83
64, 079
3, 143, 570 12, 753, 510 3, 114, 215 480, 147
Nonspendable 9, 766, 137 -
Restricted - 44, 525, 380
Committed 40,47, 513 -
Unassigned 6, 145, 676
11, 969,31 8, 624, 058
2, 664, 730
Total fund balances 56, 359,26 44, 525, 380 11, 969,31 11, 288, 788 Total liabilities, deferred inflows of
resources and fund balances $ 59,02, 896 $ 57, 278, 890 $ 15, 084, 146 $ 11, 768, 935 See accompanying Notes to Basic Financial Statements. 32 Capital Project
Funds
Nonmajor Total
General CIP Governmental Governmental
Projects Funds Funds
19, 338, 954 $ 52, 103, 916 $ 200, 688, 507
2, 702, 948 7, 048, 548
20, 350 20, 350
38, 605 113, 353 414, 87
14, 604
209, 733 - 604, 565
9, 371,05
19, 587, 292 $ 54, 940, 567 $ 218, 162, 726
1,03,36 $ 2, 639, 831 $ 10, 771, 449
370, 077
1, 781, 974 5, 214, 522
4, 592, 642 5, 754, 977
14, 604 14, 604
7, 498, 000
1,03,36 9, 029,51 29, 623,29
9, 766, 137
13, 592, 877 46, 321, 124 125, 033, 370
4, 891, 279 - 48, 003, 522
409, 608) 5, 736, 068
18, 484, 156 45, 911, 516 188, 539, 097
19, 587, 292 $ 54, 940, 567 $ 218, 162, 726
See accompanying Notes to Basic Financial Statements. 33 City of Lathrop
Reconciliation of the Governmental Funds Balance Sheet
to the Government - Wide Statement of Net Position
June 30, 2023
Total Fund Balances - Total Governmental Funds $ 188, 539, 097 Amounts reported for governmental activities in the statement of net position are different because:

Capital assets used in governmental activities were not current financial resources.

Therefore, they were not reported in the Governmental Funds Balance Sheet. Except for the internal service funds reported below, the capital assets were adjusted as follows:

Nondepreciable 41, 671, 142
Depreciable, net 282, 38, 857
Total capital assets 323, 999,99
In the Government - Wide Financial Statements, deferred employer contributions for pension and OPEB, certain differences between actuarial estimates and actual results, and other adjustments resulting from changes in assumptions and benefits are deferred in the current year.

Deferred outflows of resources related to pension
Deferred outflows of resources related to OPEB
Deferred inflows of resources related to pension
Deferred inflows of resources related to OPEB
Long- term liabilities were not due and payable in the current period. Therefore, they were not reported in the Governmental Funds Balance Sheet.

Long- term debt - due within one year
Leases payable - due within one year
Compensated absences - due in more than one year
Long- term debt - due in more than one year
Leases payable - due in more than one year
Net pension liability
Net OPEB liability
Total long- term liabilities
4, 371,31
1, 011, 762
335, 177)
233, 798)
320, 000)
155, 512)
311,57)
2, 110, 000)
939, 279)
6, 972, 342)
1, 243,92)
12, 051, 782)
Net Position of Governmental Activities $ 505, 301, 432 See accompanying Notes to Basic Financial Statements. 34 This page intentionally left blank
35 City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds
For the year ended June 30, 2023
Special Revenue Funds
Capital Project
Funds
Building Safety &
General Fund Capital Facility Fees Inspection Streets and Roads REVENUES:

Taxes and assessments $ 31, 612, 884 $ 11, 020,78 $ - $ Licenses and permits 347, 022 - 1, 820, 591
Intergovernmental 9, 365, 468 - - -
Charges for services 763, 39 - 3, 522, 093 -
Use of money and property 2,84, 635 704, 94 179, 43 118, 890 Fines and forfeitures 7, 893 - -
Developer participation - - -
Miscellaneous 273, 860 - 4, 663 -
Total revenues
EXPENDITURES:
44, 655, 101 11, 725, 022 5,26, 840 118, 890
Current:

General government 9, 372, 651
Public safety 10, 602, 053
Community development 1, 282, 316
Culture and leisure 2, 574, 753
Public works 938, 626 10, 452, 983
Capital outlay 2, 758, 535
Debt service:

Principal retirement 315, 000
Lease principal retirement 367, 507
Interest and fiscal charges 65, 981
Total expenditures

REVENUES OVER ( UNDER)

EXPENDITURES
2, 049, 768
8, 624, 837
28,77, 422 10, 452, 983 2, 049, 768 8, 624, 837
16, 377, 679 1, 272, 039 3, 477, 072 ( 8, 505, 947)
OTHER FINANCING SOURCES (USES):

Transfers in 7, 329, 195 493, 042 8, 761, 455
Transfers out ( 18, 755,31) ( 12, 254, 580) ( 498, 620) - Lease and software subscription proceeds 1, 462, 298 - - Total other financing sources ( uses) ( 9,64, 238) ( 11, 761, 538) ( 498, 620) 8, 761, 455 Net change in fund balances 6, 413,41 ( 10, 489,99) 2, 978, 452 255, 508 FUND BALANCES:

Beginning of year 52, 874, 312 55, 014, 879 8, 991, 479 11, 033, 280 Restatement ( 2, 928, 427) - -
Beginning of year, as restated 49, 945, 885 55, 014, 879 8, 991, 479 11, 033, 280 End of year $ 56, 359,26 $ 44, 525, 380 $ 11, 969,31 $ 11, 288, 788 See accompanying Notes to Basic Financial Statements. 36 Capital Project
Funds
Nonmajor Total
General CIP Govemmental Govemmental
Projects Funds Funds
118, 499
10, 662, 275 $ 53, 295,37
37, 590 2,05,03
8, 774,29 18,40,97
4, 369, 077 8, 654, 509
624, 050 4, 030, 511
1, 521, 831 1, 529, 724
2, 017, 292 2, 017, 292
95, 854 374,77
118, 499 28, 102, 698 90, 247, 050
9, 372, 651
4, 354, 095 14, 956, 148
54 1, 282, 370
1, 346, 821 3, 921, 574
28, 042 12, 097, 490 25, 566, 909
11, 081, 476 202, 104 22, 666, 952
315, 000
367, 507
159, 854 225, 835
11,09, 518 18,60, 418 78, 674, 946
10, 991, 019) 9,42, 280 11, 572, 104
20, 469, 099 6,38, 565 43, 691, 356
9, 038, 514) ( 40, 547, 445)
1, 462, 298
20, 469, 099 2, 399, 949) 4, 606, 209
9, 478, 080 7, 542, 331 16,78, 313
9, 006,76 37, 850, 747 174, 770,73
518, 438 ( 2, 409, 989)
9, 006,76 38,69, 185 172, 360, 784
18, 484, 156 $ 45, 911, 516 $ 188, 539, 097
See accompanying Notes to Basic Financial Statements. 37 City of Lathrop
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Government -Wide Statement of Activities For the year ended June 30, 2023
Net Change in Fund Balances - Total Governmental Funds
Amounts reported for governmental activities in the Government - Wide Statement of Activities were different because:

Governmental funds reported capital outlay as expenditures. However, in the Government - Wide Statement of Activities, the cost of those assets was allocated over their estimated lives as depreciation expense. This was the amount of capital assets recorded in the current period.

Donated capital assets are not recorded in the governmental funds, but are recognized as revenue at the acquisition value of the assets.

Depreciation expense on capital assets was reported in the Government -Wide Statement of Activities, but did not require the use of current financial resources. Therefore, depreciation expense was not reported as expenditures in the governmental funds.

Accrued compensated leave payments were reported as expenditures in the governmental funds, however expense is recognized in the Government - Wide Statement of Activities based on earned leave accruals.

Debt proceeds provide current financial resources to governmental funds, but issuing debt increased longterm liabilities in the Government -Wide Statement of Net Position. Repayment of debt was an expenditure in governmental funds, but the repayment reduced long- term liabilities in the Government -Wide Statement of Net Position.

Long- term debt repayments
Lease and subsciption payments
Acquisition of new leases and subscriptions
Current year employer pension contributions are recorded as expenditures in the governmental funds, however, these amounts are reported as a deferred outflow of resources in the Government -Wide Statement of Net Position.

Pension expense is reported in the Government - Wide Statement of Activities does not require the use of current financial resources, and therefore is not reported as expenditures in governmental funds.

OPEB expense is reported in the Government - Wide Statement of Activities does not require the use of current financial resources, and therefore is not reported as expenditures in governmental funds.

Change in Net Position of Governmental Activities
16,78, 313
22, 782, 545
59, 690, 319
11, 822,76)
41, 322)
315, 000
367, 507
1, 462, 298)
1, 739, 487
1, 293, 960)
7, 692
86, 460,07
See accompanying Notes to Basic Financial Statements. 38 This page intentionally left blank
39 City of Lathrop
Statement of Net Position
Proprietary Funds
June 30, 2023
Water
Business - Type Activities - Enterprise Funds
Governmental
Activities
Compensated
Absences Internal
Sewer Totals Service Fund
ASSETS
Current Assets:

Cash and investments $ 40, 122, 806 $ 35, 961, 199 $ 76, 084,05 $ Receivables:

Accounts (net of allowance for uncollectibles) 2,06, 105 1, 377, 643 3, 583, 748 Accrued interest 81,03 77, 690 159, 43
Restricted:

Cash and with fiscal agent 1, 408, 865 1, 408, 865
Total current assets 43, 819, 579 37, 416, 532 81, 236, 111 Noncurrent:

Capital assets:

Nondepreciable capital assets 3, 165, 631 15, 079, 202 18, 244, 833 Depreciable capital assets 105, 769, 161 164, 060, 264 269, 829, 425 Accumulated depreciation ( 33, 736,05) ( 32, 881,29) ( 66,18, 534) Net capital assets 75, 198, 087 146, 257, 637 221, 455, 724 Total noncurrent assets
Total assets

DEFERRED OUTFLOWS OF RESOURCES
Deferred pension related items
Deferred OPEB related items
75, 198, 087 146, 257, 637 221, 455, 724
2, 126, 852
2, 126, 852
119, 017, 666 183, 674, 169 302, 691, 835 2, 126, 852
390,22 246, 428 636, 750
97, 536 62, 176 159, 712
Total deferred outflows of resources 487, 858 308, 604 796, 42

LIABILITIES
Current liabilities:

Accounts payable 1, 851, 753
Accrued interest 101, 245
Unearned revenue 198, 000
Deposits payable 1, 007, 546
Due to other governments 298, 77
Loans payable 1, 615, 562
1, 476, 840
31, 288
3,28, 593
101, 245
198, 000
1, 038, 834
298, 77
1, 615, 562
Total current liabilities 5, 072, 893 1, 508, 128 6, 581, 021 Noncurrent liabilities:

Advances from other funds 1, 873, 305 1, 873, 305 -
Accrued compensated absences 63,22 29,26 92, 848 2, 126, 852 Net pension liability 603, 302 390, 739 994, 01
Net OPEB liability 119, 565 76, 309 195, 874
Loans payable 13, 540, 667 - 13, 540, 667
Total noncurrent liabilities 14, 327, 156 2, 369, 579 16, 696, 735 2, 126, 852 Total liabilities 19, 400, 049 3, 877, 707 23,77, 756 2, 126, 852

DEFERRED INFLOWS OF RESOURCES
Deferred pension related items
Deferred OPEB related items
32, 199 20, 560 52, 759
22, 957 14, 503 37, 460
Total deferred inflows of resources 55, 156 35, 063 90, 219

NET POSITION
Net investment in capital assets 60, 041, 858 146, 257, 637 206,99, 495 Restricted 1, 408, 865 1, 408, 865
Unrestricted 38, 599,96 33, 812, 366 72, 411, 962
Total net position $ 100, 050, 319 $ 180, 070,03 $ 280, 120, 322 $ See accompanying Notes to Basic Financial Statements. 40 City of Lathrop
Statement of Revenues, Expenses and Changes in Net Position Proprietary Funds
For the year ended June 30, 2023
Governmental
Business - Type Activities - Enterprise Funds Activities OPERATING REVENUES:

Sales and service charges
Other income
Total operating revenues
OPERATING EXPENSES:

General and administrative
Maintenance and operations
Depreciation expense
Water
Compensated
Absences Internal
Sewer Totals Service Fund
10, 765, 615 $ 10, 428, 292 $ 21, 193, 907 $ 301, 93
320,55 366, 92 687, 317
11, 085, 970 10, 795, 254 21, 881, 224 301, 93
1, 364, 848
4, 869, 796
2, 432, 538
953, 800
5, 165,93
3,38, 413
2, 318, 648
10, 034, 989
5, 770, 951
301, 93
Total operating expenses 8, 667, 182 9, 457,06 18,24, 588 301, 93 Operating income ( loss) 2, 418, 788 1, 337, 848 3, 756, 636 NONOPERATING REVENUES ( EXPENSES):

Taxes and assessments 2, 332, 295
Investment earnings 492,76
Interest expense ( 463, 304)
3, 507, 106
460, 270
5, 839, 401
952, 746
463, 304)
Total nonoperating revenues ( expenses) 2, 361, 467 3, 967, 376 6, 328, 843 Income before contributions and transfers 4, 780, 255 5, 305, 224 10, 085, 479 CONTRIBUTIONS AND TRANSFERS:

Contributions 10, 779, 611 18, 318, 755 29, 098, 366
Transfers in - 43, 149 43, 149
Transfers out ( 1, 509, 110) ( 1, 677, 950) ( 3, 187, 060) Total contributions and transfers 9, 270, 501 16, 683, 954 25, 954, 455 Change in net position 14, 050, 756 21, 989, 178 36, 039, 934 NET POSITION:

Beginning of year 88, 417, 047 158, 00, 825 246, 497, 872 Restatements ( 2, 417,84) - ( 2, 417,84)
Beginning of year, as restated 85, 999, 563 158, 00, 825 244, 080, 388 End of year $ 100, 050, 319 $ 180, 070,03 $ 280, 120, 322 $ See accompanying Notes to Basic Financial Statements. 41 City of Lathrop
Statement of Cash Flows
Proprietary Funds
For the year ended June 30, 2023
Business -Type Activities
Governmental
Activities
Water
Compensated
Absences Internal
Sewer Totals Service Fund
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash received from customers and users $ 11,98, 465 $ 10, 518, 697 $ 21, 717, 162 $ Cash paid to suppliers for goods and services ( 4, 086, 737) ( 4, 929, 102) ( 9, 015, 839) Cash paid to employees for services ( 1, 337, 068) ( 937, 348) ( 2,74, 416) Cash received from ( payments to) others 320,55 366, 92 687, 317 Net cash provided (used) by operating activities

CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:

Cash transfers in
Cash transfers out
Repayment made to other funds
Taxes and assessments
301, 93
6, 095,15 5, 019, 209 11,14, 224 301, 93
1, 509, 110)
2, 332, 295
43, 149 43, 149
1, 677, 950) ( 3, 187, 060)
532,59) ( 532,59)
3, 507, 106 5, 839, 401
Net cash provided ( used) by
non -capital financing activities 823, 185 1, 339, 746 2, 162, 931

CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:

Acquisition and construction of capital assets ( 653, 093) Principal paid on capital debt ( 1, 585, 872)
Interest paid on capital debt ( 526, 975)
6,73,94)
59, 124)
7, 326, 787)
1, 585, 872)
586, 099)
Net cash provided ( used) by
capital and related financing activities: ( 2, 765, 940) ( 6, 732, 818) ( 9, 498, 758) CASH FLOWS FROM INVESTING ACTIVITIES:

Interest received 492,76 460, 270 952, 746
Net cash provided ( used) by investing activities 492,76 460, 270 952, 746 Net increase ( decrease) in cash and cash equivalents 4, 644, 736 86, 407 4, 731, 143 301, 93 Cash and cash equivalents at beginning of year 36, 886, 935 35, 874, 792 72,61,27 1, 824, 939 Cash and cash equivalents at end of year $ 41, 531, 671 $ 35, 961, 199 $ 77, 492, 870 $ 2, 126, 852

RECONCILIATION OF OPERATING INCOME ( LOSS) TO NET
CASH PROVIDED ( USED) BY OPERATING ACTIVITIES:

Operating income (loss) $ 2, 418, 788 $ 1, 337, 848 $ 3, 756, 636 $ Adjustments to reconcile operating income (loss) to
net cash provided by (used in) operating activities:

Depreciation 2, 432, 538 3,38, 413 5, 770, 951
Increase) decrease in accounts receivable 254,70 90, 405 344, 675 Increase ( decrease) in accounts payable 783, 059 236, 091 1, 019, 150 Increase ( decrease) in unearned revenue 198, 000 - 198, 000 Increase (decrease) in deposits payable ( 19, 420) - ( 19, 420) - Increase (decrease) in compensated absences 8, 956 2, 355 11, 311 301, 93 Increase ( decrease) in pension and OPEB 18, 824 14, 097 32, 921 - Total Adjustments 3, 676, 227 3, 681, 361 7, 357, 588 301, 93 Net cash provided ( Used) by operating activities $ 6, 095,15 $ 5, 019, 209 $ 11,14, 224 $ 301, 93 Non -Cash Investing, Capital, and Financing Activities:

Donated assets $ 10, 779, 611 $ 18, 318, 755 $
See accompanying Notes to Basic Financial Statements. 42 This page intentionally left blank
43 City of Lathrop
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2023
Custodial
Funds
ASSETS
Cash and investments $ 5, 642, 239
Receivables:

Accrued interest 13, 389
Restricted assets:

Cash and with fiscal agent 16, 434, 791
Total assets 22, 090, 419

LIABILITIES
Accounts payable
Deposits payable
Total liabilities

NET POSITION
488, 806
30, 747
519,53
Restricted for:

Individuals, organizations, and other governments 21, 570, 866 Total Net Position 21, 570, 866
See accompanying Notes to Basic Financial Statements. 44 City of Lathrop
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the year ended June 30, 2023
Custodial
Funds
ADDITIONS:

Collections for assessment districts $ 6, 779, 871
Receipts from others 12, 459, 064
Investment earnings 165, 323
Total additions 19, 404, 258
DEDUCTIONS:

Administrative expenses
Contractual services
Interest expense
105, 686
506,12
8, 460, 838
Total deductions 9, 073,36
Change in net position 10, 331, 222
NET POSITION:

Beginning of year 4, 298, 198
Restatements 6, 941, 446
Beginning of year, as restated 11, 239, 644
End of year $ 21, 570, 866
See accompanying Notes to Basic Financial Statements. 45 This page intentionally left blank
46 NOTES TO BASIC

FINANCIAL STATEMENTS
This page intentionally left blank.
48 City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting Entity
The City of Lathrop, California, (the City) was incorporated July 1, 1989, under the general laws of the State of California. The City operates under a Council -Manager form of government and provides the following services: general government, public safety, public ways and facilities/ transportation, culture and leisure, and public utilities.

The financial statements of the primary government of the City of Lathrop include the activities of the City as well as the Lathrop Public Facilities Financing Corporation, which is controlled by and dependent on the City. While it is a
separate legal entity, its financial activities are integral to those of the City. Its financial activities have been aggregated and merged ( termed " blending") with those of the primary government of the City in the accompanying financial statements.

On April 11, 2000, the City Council formed the Lathrop Public Facilities Financing Corporation Corporation), a non- profit public benefit corporation. The Corporation was formed to assist the City in financing the acquisition, construction, and improvement of municipal facilities. The Corporation is also empowered to acquire property. The Corporation is governed by a Board of Directors consisting of the City Council members.

B. Basis of Presentation
The City' s
Basic Financial Statements are prepared in conformity with accounting principles generally accepted in the United States of America. The Government Accounting Standards Board is the acknowledged standard setting body for establishing accounting and financial reporting standards followed by governmental entities in the U. S. A.

These Standards require that the financial statements described below be presented.

Government- zvide Statements: The Statement of Net Position and the Statement of Activities display information about the primary government ( the City and its component unit). These statements include the financial activities of the overall City government, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. However, the interfund services provided and used are not eliminated in the process of consolidation. These statements distinguish between the governmental and business - type activities of the City. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. Business - type activities are financed in whole or in part by fees charged to external parties. 49 City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued B. Basis of Presentation, Continued
The Statement of Activities presents a
comparison between direct expenses and program revenues for each segment of the business - type activities of the City and for each function of the City' s governmental activities. Direct expenses are those that are specifically associated with a program or function and,
therefore, are clearly identifiable to a particular function. Program revenues include (a) charges paid by the recipients of goods or services offered by the programs, (b) grants and contributions that are restricted to meeting the operational needs of a particular program and (c) fees, grants and contributions that are restricted to financing the acquisition or construction of capital assets. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues.

Fund Financial Statements - The fund financial statements provide information about the City' sfunds, including fiduciary funds and blended component units. Separate statements for each fund category - governmental, proprietary, and fiduciary - are presented. The emphasis of fund financial statements is on major individual governmental and enterprise funds, each of which is displayed in a separate column.

All remaining governmental and enterprise funds are aggregated and reported as nonmajor funds.

Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated with the principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal values. Nonoperating revenues, such as subsidies and investment earnings, result from nonexchange transactions or ancillary activities.

C. Major Funds
Major funds are defined as funds that have either assets, liabilities, revenues or expenditures/ expenses equal to ten percent of their fund -type total and five percent of the grand total. Major governmental and business - type funds are identified and presented separately in the fund financial statements. All other funds, called non -major funds, are combined and reported in a single column, regardless of their fund -
type. The General Fund is always a major fund. The City may also select other funds it believes should be presented as major funds.

The City reported the following major governmental funds in the accompanying financial statements:

General Fund
This fund accounts for all financial resources except those accounted for in another fund. It is the general operating fund of the City.

Capital Facility Fees Special Revenue Fund
To account for the financial resources associated with the capital facility fees for Traffic Mitigation includes Regional Traffic), Storm Drain, Culture and Leisure, City Service, and Administration. 50 City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued C. Major Funds, Continued
Buildings Safety & Inspection Special Revenue Fund
This fund accounts for building safety and inspection permit fee revenue and activity.

Streets and Roads Capital Projects Fund
The Streets and Roads Capital Projects Fund accounts for capital project expenditures related to streets and roads occurring over more than one fiscal year.

General CIP Projects Fund
To account for capital project expenditures related to streets and roads occurring over more than one fiscal year.

The City reported both of its enterprise funds as major funds in the accompanying financial statements:

Water Fund
This fund accounts for the revenues and expenses of the City' s water operations.

Sewer Fund
This fund accounts for the revenues and expenses of the City' s sewer operations.

The City also reports the following fund types:

Internal Service Fund
The fund accounts for compensated absences activities, which are provided to other departments on a cost -reimbursement basis.

Fiduciary Funds
Custodial funds are used to account for assets held by the City as a custodian for certain special assessment districts. The financial activities of these funds are excluded from the entity -wide financial statement but are presented in separate Fiduciary Fund financial statements.

D. Basis ofAccounting
The government -wide, proprietary, and fiduciary fund financial statements are reported using the economic resources measurement focus and the full accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place.

Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. 51 City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued D. Basis of Accounting, Continued
The City considers all revenues reported in the governmental funds to be available if the revenues are collected within sixty days after year- end. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on longOterm debt, claims and judgments, and compensated absences, which are recognized as expenditures to the extent they have matured. Governmental capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of governmental longterm debt and acquisitions under capital leases are reported as other financing sources.

Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund' s
principal ongoing operations. The principal operating revenues of the water fund, sewer fund, and internal service funds are charges to customers for sales and services.

Operating expenses for enterprise funds and internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.

Non -exchange transactions, in which the City gives or receives value without directly receiving or giving equal value in exchange, include taxes, grants, entitlements, and donations. On the accrual basis, revenue from taxes is recognized in the fiscal year for which the taxes are levied or assessed. Revenue from grants, entitlements, and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied.

The City may fund programs with a combination of cost -reimbursement grants, categorical block grants, and general revenues. Thus, both restricted and unrestricted Net Position may be available to finance program expenditures. The City' s policy is to first apply restricted grant resources to such programs, followed by general revenues if necessary.

Certain indirect costs are included in program expenses reported for individual functions and activities.

Those revenues susceptible to accrual are use of money and property revenue, charges for services and fines and penalties. Sales taxes collected and held by the State at year- end on behalf of the City also are recognized as revenue.

E. Property Tax
The City' s property taxes are levied each July 1, on the assessed values as of the prior January 1 for all real and personal property located in the City. Property sold after the assessment date ( January 1) is reassessed and the amount of property tax levied is prorated. 52 City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued E. Property Tax, Continued
The City has elected to receive property taxes from the County of San Joaquin ( County) under the Teeter Plan. Under this program, the City receives 100% of the levied property taxes in periodic payments with the County assuming responsibility for delinquencies. Secured property taxes are due in two equal installments; the first is due November 1 and delinquent with penalties after December 10; the second is due February 1 and delinquent with penalties after April 10. Unsecured personal property taxes do not constitute a lien against real property unless the taxes become delinquent. Payment must be made in one installment, which is delinquent if not paid by August 31. The City accrues only taxes which are received from the County within 60 days after fiscal year end.

F. Use of Estimates
The preparation of the financial statements in conformity with generally accepted accounting principles GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

G. Cash and Cash Equivalents
The City' scash and cash equivalents are considered to be cash on hand, demand deposits, and short- tem investments with original maturities of three months or less from the date of acquisition.

H. Accounts Receivable
In the government -wide statements, receivables consist of all revenues earned at year- end and not yet received. Receivables are recorded in the financial statements net of any allowance for doubtful accounts if applicable, and estimated refunds due. Major receivable balances for the governmental activities include sales and use taxes, franchise taxes, grants, police fines and other fees. Federal and state grants are considered receivable and accrue as revenue when reimbursable costs are incurred. Business - type activities report utilities and interest earnings as their major receivables.

In the fund financial statements, material receivables in governmental funds include revenue accruals such as sales tax, franchise tax, and grants and other similar intergovernmental revenues since they are usually both measurable and available.

I. Prepaid Expenses
Prepaid items are also recognized under the consumption method. Payments to vendors that reflect costs applicable to future accounting periods are recorded as prepaid items in both government -wide and fund financial statements.
33 City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued I. Capital Assets
The accounting treatment over property, plant and equipment depends on whether the assets are used in governmental fund operations or proprietary fund operations and whether they are reported in the government -wide or fund financial statements.

Donated capital assets, donated works of art and similar items, and capital assets received in a service concession arrangement are reported at the estimated acquisition value on the date contributed. All other capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available. The City' s policy is to capitalize all capital assets with costs exceeding certain minimum thresholds.

The City has recorded all its public domain ( infrastructure) capital assets placed in service, which include roads, bridges, curbs and gutters, streets and sidewalks, drainage systems, and lighting systems.

The purpose of depreciation is to spread the cost of capital assets equitably among all users over the life of these assets. The amount charged to depreciation expense each year represents that year' s pro rata share of the cost of capital assets. Generally accepted accounting principles require that all capital assets with limited useful lives be depreciated over their estimated useful lives. Depreciation is provided using the straight line method which means the cost of the capital asset is divided by its expected useful life in years and the result is charged to expense each year until the capital asset is fully depreciated. The City has assigned the useful lives listed below to capital assets.

Buildings 10 - 30 years
Improvements 5 - 50 years
Equipment and Vehicles 5 - 30 years
Infrastructure 5 - 40 years
The City capitalizes all capital assets with a useful life of more than one year. Prior to July 1, 2019, the City capitalized all capital assets with a cost greater than $3, 000. Subsequent to that date, the City capitalizes all land purchases and all other capital assets as follows:

Land
Land Improvements
Buildings and Building Improvements
Infrastructure
Equipment, Furniture and Vehicles
Leases and Subscriptions ( GASBS 87 and 96)
Leasehold Improvements
Construction in Progress for Year End Reporting
50, 000
50, 000
50, 000
10, 000
100, 00
50, 000
50, 000 will exceed amount at completion
54 City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued K. Compensated Absences
City employees accumulate earned but unused vacation which can be converted to cash at termination of employment. For governmental funds, aliability for these amounts is recorded only if they have matured, for example, as a result of employee resignations and retirements. The remaining amounts are reported as a
liability in the Statement of Net Position. Proprietary funds' liability for compensated absences is recorded in each proprietary fund. The liability for compensated absences is determined annually.

L. Long Term Liabilities
In the government - wide financial statements and the proprietary fund types in the fund financial statements, long- term liabilities, and other long- term obligations are reported as liabilities in the applicable governmental activities, business - type activities, or proprietary fund type statement of net position.

In the fund financial statements, the face amount of debt issued is reported as other financing sources.

Premiums received are reported as other financing sources, while discounts are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.

M. Net Pension Liability
For purposes of measuring the net pension liability, deferred outflows and inflows of resources related to pensions, and pension expense, information about the fiduciary net position and additions to/ deductions from the fiduciary net position have been determined on the same basis as they are reported by the Ca1PERS Financial Office. For this purpose, benefit payments ( including refunds of employee contributions) are recognized when currently due and payable in accordance with the benefit terms.

Investments are reported at fair value. Ca1PERS audited financial statements are publicly available reports that can be obtained from Ca1PERS' website under Forms and Publications.

N. Other Post -Employment Benefits ( OPEB)
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense have been determined by an independent actuary. For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms.

Generally accepted accounting principles require that the reported results must pertain to liability information within certain defined timeframes. For this report, the following timeframes are used:

Valuation Date
Measurement Date
Measurement Period
June 30, 2021
June 30, 2022
June 30, 2021 to June 30, 2022
55 City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued O. Deferred Outflows/ Inflows of Resources
In addition to assets, the statement of net position reports a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net assets that applies to a future period( s) and so will not be recognized as an outflow of resources (expense/ expenditure) until then.

In addition to liabilities, the statement of net position reports a separate section for deferred inflows of
resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net assets that applies to a future period( s) and so will not be recognized as an inflow of resources revenue) until that time.

P. Interfund Transactions
Interfund transactions are reflected as either loans, services provided, reimbursements, or transfers. Loans are reported as receivables and payables as appropriate, are subject to elimination upon consolidation and are referred to as either " due to/ from other funds" (i.e., the current portion of interfund loans) or advances to/ from other funds" (i.e., the noncurrent portion of interfund loans). Any residual balances outstanding between the governmental activities and the business - type activities are reported in the government -wide financial statements as " internal balances". Advances between funds, as reported in the fund financial statements, are offset by a fund balance reserve account in applicable governmental funds to indicate that they are not available for appropriation and are not available financial resources.

Services provided, deemed to be at market or near market rates, are treated as revenues and expenditures/ expenses. Reimbursements are when one fund incurs a cost, charges the appropriate benefiting fund, and reduces its related cost as a reimbursement. All other interfund transactions are treated as transfers. Transfers between governmental or proprietary funds are netted as part of the reconciliation to the government -wide presentation.

Q. Net Position and Fund Balance
Net Position
Net position is the excess of all the City' sassets all deferred outflows over all its liabilities and deferred inflows, regardless of fund. Net position is divided into three captions on the Statement of Net Position.

These captions apply only to net position, which is determined only at the Government - wide level, and business -type activities and are described below:

Net Investment in Capital Assets describes the portion of Net Position which is represented by the current net book value of the City' scapital assets, less the outstanding balance of any debt issued to finance these assets and related deferred inflow of resources. 56 City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued Q. Net Position and Fund Balance, Continued
Restricted describes the portion of Net Position which is restricted as to use by the terms and conditions of agreements with outside parties, governmental regulations, laws, or other restrictions which the City cannot unilaterally alter.

Unrestricted describes the portion of Net Position which is not restricted to use.

Fund Balance
Governmental fund balances represent the net current assets of each fund. Net current assets generally represent a fund' s cash and receivables, less its liabilities.

The City' s
fund balances are classified based on spending constraints imposed on the use of resources.

For programs with multiple funding sources, the City prioritizes and expends funds in the following order: Restricted, Committed, Assigned, and Unassigned. Each category in the following hierarchy is ranked according to the degree of spending constraint:

Nonspendables represents balances set aside to indicate items do not represent available, spendable resources even though they are a
component of assets. Fund balances required to be maintained intact, such as Permanent Funds, and assets not expected to be converted to cash, such as prepaids, notes receivable, and land held for redevelopment are included. However, if proceeds realized from the sale or collection of nonspendable assets are restricted, committed or assigned, then nonspendable amounts are required to be presented as a component of the applicable category.

Restricted fund balances have external restrictions imposed by creditors, grantors, contributors, laws, regulations, or enabling legislation which requires the resources to be used only for a specific purpose.

Nonspendable amounts subject to restrictions are included along with spendable resources.

Committed fund balances include amounts that can be used only for the specific purposes determined by a formal action of the City Council' s
highest level of decision -making authority. The City Council can, by adoption of a resolution prior to the end of the fiscal year, commit fund balance. Once adopted, the limitation imposed by the resolution remains in place until a similar action is taken ( the adoption of another resolution) to remove or revise the limitation.

Assigned fund balances are amounts constrained by the City' s intent to be used for a specific purpose but
are neither restricted nor committed. The Authority for assigning fund balance is expressed by the City Council or its designee ( i.e., City Manager), as established in the City' s Reserve Policy. This category
includes nonspendables, when it is the City' sintent to use proceeds or collections for a specific purpose, and residual fund balances, if any, of Special Revenue, Capital Projects and Debt Service Funds which have not been restricted or committed.
57 City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued Q. Net Position and Fund Balance, Continued
Unassigned fund balance represents residual amounts that have not been restricted, committed, or assigned. This includes the residual general fund balance and residual fund deficits, if any, of other governmental funds.

Further detail about the City' s
fund balance classification is described in Note 9.

R. New, Closed and Renamed Funds
The following funds were established during the fiscal year:

The Gateway Business Park Special Revenue Fund - Lathrop Gateway Business Park Specific Plan (" Gateway Business Park") is an industrial park currently being developed by Phelan Haugen Development in the City. Phelan is entitled for approximately 3. 2 million square feet of light industrial development. In order for the City to ensure that development continues to pay its own way, a Community Facilities District was formed to cover the maintenance needs of the development.

The following funds were closed during the year:

Office of Traffic and Safety
Central Lathrop Specific Plan ( CLSP) Services CFD Special Revenue Fund S. New Accounting Pronouncement
GASB Statement No. 91, Conduit Debt Obligations - The primary objectives of this Statement are to provide a single method of reporting conduit debt obligations by issuers and eliminate diversity in practice associated with ( 1) commitments extended by issuers, ( 2) arrangements associated with conduit debt obligations, and ( 3) related note disclosures. The City updated disclosures relating to conduit debt obligations as part of implementation of this statement.

GASB Statement 94, Public -Private and Public - Public Partnerships and Availability Payment Arrangements - The primary objective of this Statement is to improve financial reporting by addressing issues related to public -private and public -public partnership arrangements ( PPPs). The requirements of this statement did not apply to the City for the current fiscal year.

GASB Statement No. 96, Subscription -based Information Technology Arrangements - This Statement provides guidance on the accounting and financial reporting for subscription -based information technology arrangements ( SBITAs) for government end users (governments). The City recognized an intangible assets and SBITA liabilities as part of implementation of this statement. 58 City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

2. CASH AND INVESTMENTS
A. Policies
The City invests in individual investments and in investment pools. Individual investments are evidenced by specific identifiable pieces of paper called securities instruments, or by an electronic entry registering the owner in the records of the institution issuing the security, called the book entry system.

California Law requires banks and savings and loan institutions to pledge government securities with a fair value of 110% of the City' scash on deposit or first trust deed mortgage notes with a value of 150% of the City' scash on deposit as collateral for these deposits. Under California Law this collateral is held in an investment pool by an independent financial institution in the City' sname and places the City ahead of general creditors of the institution pledging the collateral.

The City' sinvestments are carried at fair value, as required by generally accepted accounting principles.

The City adjusts the carrying value of its investments to reflect their fair value at each fiscal year end, and it includes the effects of these adjustments in income for that fiscal year.

Investment income is allocated among funds on the basis of average monthly cash and investment balances in these funds. Interest income on certain investments is allocated based on the source of the investment and legal requirements which apply.

Cash and investments with an original maturity of three months or less are used in preparing proprietary fund statements of cash flows because these assets are highly liquid and are expended to liquidate liabilities arising during the year.

B. Classification
Cash and investments are classified in the financial statements as shown below, based on whether or not their use is restricted under the terms of City debt instruments. Cash and investments as of June 30, 2023, are as follows:

City cash and investments in primary government:

Cash and investments $ 278, 899, 364
Cash and investments, restricted, with fiscal agents 1, 408, 865 Total primary government cash and investments 280, 38, 229 Cash and investments in Fiduciary Funds ( separate statement):

Cash and investments
Cash and investments, restricted, with fiscal agents
Total Fiduciary Funds cash and investments
5, 642, 239
16, 434, 791
22, 077,30
Total cash and investments $ 302,85, 259
59 City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

2. CASH AND INVESTMENTS, Continued
B. Classification, Continued
Cash and Investments as of June 30, 2023, consist of the following:

Cash on hand $ 6, 260
Cash with financial institutions 143, 697, 591
Investments 158, 61, 408
Total Cash and Investments $ 302,85, 259
C. Investments Authorized by the California Government Code and the City' s Investment Policy
The City' sInvestment Policy and the California Government Code allow the City to invest in the following, provided the credit ratings of the issuers are acceptable to the City and approved percentages and maturities are not exceeded. The table below also identifies certain provisions of the California Government Code or the City' s
Investment Policy where it is more restrictive that addresses interest rate risk, credit risk and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustees that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City' s investment policy.

The City' s
investment policy states that all investments and deposits shall be made in accordance to the California Government Code Sections 16429., 53600-3609 and 53630-3686, except for the reserve funds from proceeds of debt issues may be invested in permitted investments specified in the indenture of the debt issue. The City has further restricted authorized investments to the following:

Maximum Maximum
Percentage/ Investment Minimum
Maximum Amount of in One Credit
Authorized Investment Type Maturity Portfolio Issuer Ratings Local Government Bonds 5 years 30% None A
State Bonds 5 years 30% None A
US Treasury Obligations 5 years None None N/ A
US Government Agency Issues 5 years None None N/ A
Banker' s
Acceptance 180 days 40% 30% A
Commercial Paper, Prime Quality 270 days 25% 10% A
Negotiable Certificates of Deposit 5 years 30% None N/ A Repurchase and Reverse Repurchase Agreements 30 days None None A Medium - Term Notes 5 years 30% 10% A
Money Market Funds N/ A 20% None AAAm
Mutual Funds 5 years 20% 10% AAAm
Local Agency Investment Fund (" LAIF") N/ A None None N/ A Joint Power Authority Pool N/ A None None N/ A
Supranational Obligations 5 years 30% None AA
60 City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

2. CASH AND INVESTMENTS, Continued
D. Investments Authorized by Debt Agreements
The City must maintain required amounts of cash and investments with trustees or fiscal agents under the terms of certain debt issues. These funds are unexpended bond proceeds or are pledged reserves to be used if the City fails to meet its obligations under these debt issues. The California Government Code requires these funds to be invested in accordance with City resolutions, bond indentures or State statutes.

The table below identifies the investment types that are authorized for investments held by fiscal agents.

The bond indentures contain no limitations for the maximum investment in any one issuer or the maximum percentage of the portfolio that may be invested in any one investment type. The table also identifies certain provisions of these debt agreements:

Maximum Maximum
Percentage/ Investment
Maximum Amount of in One
Authorized Investment Type Maturity Portfolio Issuer
US Treasury Obligations None None None
US Agency Securities None None None
Mortgage - caked Securities 3
years None None
Banker' sAcceptance ( must be dollar denominated) 360 days None None Certificates of Deposit None None None
Commercial Paper 180 days None None
Money Market Funds N/ A None None
Local Government Bonds None None None
County Pool N/ A None None
Local Agency Investment Fund (" LAIF") N/ A None None
E. Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations. 61 City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

2. CASH AND INVESTMENTS, Continued
E. Interest Rate Risk, Continued
Information about the sensitivity of the fair values of the City' s investments ( including investments held
by bond trustees) to market interest rate fluctuations is provided by the following table that shows the distribution of the City' sinvestments by maturity or earliest call date:

Measurement Input
Investment Type
U. S. Treasury Obligations
U. S. Government Agencies Issues
Supranational Obligations
Local Agency Investment Fund
Asset Management Program
Money Market Mutual Funds
12 Months or
Less
2, 435, 680
2, 004, 931
591, 672
73,35, 096
10, 694, 379
2, 976, 780
13 to 24 Months 25 to 60 Months Total
36, 498, 141
3, 064, 838
438, 218
22, 716, 836
3, 524, 837
61,50,57
8, 594, 606
1, 029, 890
73,35, 096
10, 694, 379
2, 976, 780
Total Investments $ 92, 438, 538 $ 40, 001, 197 $ 26,41, 673 158, 61, 408 Cash in Banks and On Hand 143, 703, 851
Total City Cash and Investments $ 302,85, 259
The City is a participant in the Local Agency Investment Fund ( LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The City reports its investment in LAIF at the fair value amount provided by LAIF. For the year ended June 30, 2023, the fair value factor for the City' s
investments in LAIF was 0. 984828499. The balance is available for withdrawal on demand and is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis. Each regular LAIF account is permitted to have up to 15 transactions per month, with a minimum transaction amount of $5, 000, a maximum transaction amount of $75 million and at least 24 hours advance notice for withdrawals of $10 million or more.

Included in LAIF' s investment portfolio are collateralized mortgage obligations, mortgage -backed securities, other asset - backed securities, loans to certain state funds, United States Treasury Notes and Bills and floating rate securities issued by federal agencies, government -sponsored enterprises, and corporations. At June 30, 2023, LAIF had 2. 78% of its portfolio invested in structured notes and asset - backed securities as compared to 1. 88% in the prior year.

Bond proceeds accounts are subject to a one- time deposit with no cap and are set up with a monthly draw down schedule.
62 City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

2. CASH AND INVESTMENTS, Continued
F. Fair Value Hierarchy
The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure fair value of the assets. Level 1 inputs are quoted prices in an active market for identical assets; Level 2 inputs are
significant other observable inputs; and Level 3
inputs are significant unobservable inputs.

The following is a
summary of the fair value hierarchy of the fair value of investments of the City as of June 30, 2023:

Investments by Fair Value Level: Level 1 Level 2 Total
U. S. Treasury Obligations
U. S. Government Agencies Issues
Supranational Obligations
61,50,57 $ 61,50,57
8, 594, 606 8, 594, 606
1, 029, 890 1, 029, 890
Total Investments by Fair Value Level $ 71, 275, 153
Investments Measured at Amortized Cost:

Local Agency Investment Fund
Asset Management Program
Money Market Mutual Funds
Cash in Banks and On Hand
71, 275, 153
73,35, 096
10, 694, 379
2, 976, 780
143, 703, 851
Total Cash and Investments $ 302,85, 259
For investments classified within Level 2 of the fair value hierarchy, the City' scustodians generally use a multi -dimensional relational model. Inputs to their pricing models are based on observable market inputs in active markets. The inputs to the pricing models are typically benchmark yields, reported trades, broker dealer quotes, issuer spreads and benchmark securities, among others. Fair value is defined as the quoted market value on the last trading day of the period. These prices are obtained from various pricing sources by the custodian bank.

G. Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical
rating organization. The actual ratings as of June 30, 2023, as provided by Standard and Poor' s, are as follows:
63 City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

2. CASH AND INVESTMENTS, Continued
G. Credit Risk, Continued
Investment Type AAAm
Supranational Obligations
U. S. Government Agencies Issues
US Treasury Obligations
Money Market Mutual Funds
Totals
Not Rated:

Local Agency Investment Fund
Asset Management Program
AAA Total
1, 029, 890 $ 1, 029, 890
61,50,57 61,50,57
8, 594, 606 8, 594, 606
2, 976, 780 - 2, 976, 780
2, 976, 780 $ 71, 275, 153 74, 251, 933
73,35, 096
10, 694, 379
Total Investments $ 158, 61, 408
H. Concentration of Credit Risk
There were no Investments in any one issuer, other than U. S. Treasury securities, money market mutual funds, and California Local Agency Investment Funds that represent 5% or more of total City- wide investments at June 30, 2023.

3. INTERFUND TRANSACTIONS
A. Long -Term Advances
As of June 30, 2023, the Sewer Enterprise Fund had a
remaining balance of $1, 873, 305 owed to the General
Fund, which was used to cover capital construction and other related costs. The advances are repaid with future operating revenues over several years.

In the fiscal year ended June 30, 2023, the City loaned the Capital Facility Fees Fund $ 7, 498, 000 for the purpose of funding an animal shelter. The loan will be repaid through fee revenues.

B. Short -Term Activities
As of June 30, 2023, the General Fund loaned the State Grants Special Revenue Fund ( non -major governmental fund) $14, 604 to cover atemporary cash shortfall. 64 City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

3. INTERFUND TRANSACTIONS
C. Transfers Between Funds
With Council approval, resources may be transferred from one City fund to another. Transfers between funds during the fiscal year ended June 30, 2023, were as follows:

Transfers In
Transfers Out
Capital General Non -Major
General Facility Streets & CIP Governmental
Fund Fees Roads Projects Funds Sewer Total
Major Funds:

General Fund $ - $ 365, 042 $ 3, 682, 551 $ 9, 279, 576 $ 5, 428, 562 $ - $ 18, 755,31 Capital Facilities Fee Special Revenue Fund 481, 000 - 1, 004, 487 10, 769, 093 - - 12, 254, 580 Building Safety & Inspection Special Revenue Fund 498, 620 - - - 498, 620 Non -Major Governmental Funds 3, 292, 515 128, 000 4, 074, 417 290, 430 1, 210, 003 43, 149 9, 038, 514 Major Enterprise Funds:

Water 1, 409, 110 - - 100, 00 - 1, 509, 110
Sewer 1, 647, 950 - 30, 000 1, 677, 950
Total 7, 329, 195 $ 493, 042 $ 8, 761, 455 $20, 469, 099 $ 6,38, 565 $ 43, 149 $ 43, 734, 505 The purpose of the General Fund transfers out were to fund various capital projects and, to a lesser extent, to subsidize special revenue funds' operations. Transfers from the Capital Facilities Fee Special Revenue Fund were to fund operations and contribute to capital projects. Transfers from the Building, Safety & Inspection Special Revenue Fund, and the Water and Sewer Enterprise Funds to the General Fund were to help pay for overhead costs. Transfers from Non -Major Governmental Funds to the General Fund and Streets & Roads were to pay for overhead costs and projects, and capital projects, respectively.

D. Internal Balances
Internal balances are presented in the entity -wide financial statements only. They represent the net interfund receivables and payables remaining after the elimination of all such balances within governmental and business - type activities.
65 City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

4. CAPITAL ASSETS
A. Capital Asset Additions and Retirements
Capital assets activity for the year ended June 30, 2023, is as follows:

Balance Balance
Governmental Activities July 1, 2022 Additions Retirements June 30, 2023 Capital assets not being depreciated:

Land
Construction in Progress
Total capital assets not being depreciated
10, 599, 729 $ 2,87, 721 $
21, 012, 408 7,71, 284
12, 887, 450
28, 783, 692
31, 612, 137 10, 059,05 41, 671, 142
Capital assets being depreciated/ amortized:

Buildings 25, 109, 553 - 25, 109, 553
Improvements 83, 567, 296 9, 610, 242 93, 177, 538
Equipment and Vehicles 5, 443, 659 1, 469, 659 6, 913, 318 Infrastructure 215, 579, 620 59, 690, 319 275,69, 939
Equipment and Vehicles - Right -to -use Assets 210, 928 1, 643,39 ( 210, 928) 1, 643,39 Total capital assets being depreciated/ amortized 329, 911, 056 72, 413, 859 ( 210, 928) 402, 113, 987 Less accumulated depreciation/ amortization:

Buildings ( 4,01, 953) ( 585, 345) ( 4, 987, 298)
Improvements ( 28, 142, 067) ( 4, 064, 305) ( 32, 206, 372) Equipment and Vehicles ( 2, 993, 08) ( 747, 416) ( 3, 740, 454) Infrastructure ( 72, 425, 196) ( 5, 876, 91) - ( 78, 302, 157) Equipment and Vehicles - Right -to -use Assets ( 81, 793) ( 548, 849) 81, 793 ( 548, 849) Total accumulated depreciation/ amortization ( 108, 044,47) (11, 822,76) 81, 793 ( 119, 785, 130) Net capital assets being depreciated/ amortization 221, 867, 009 60, 590, 983 ( 129,35) 282, 38, 857 Governmental Activities Capital Assets, Net $ 253, 479, 146 $ 70, 649, 988 $ ( 129,35) $323, 999,99 66 City of Lathrop
Notes to Basic Financial Statements
For the 'Year Ended June 30, 2023

4. CAPITAL ASSETS, Continued
A. Capital Asset Additions and Retirements, Continued
Balance Balance
Business - type Activities July 1, 2022 Additions Transfers June 30, 2023 Capital assets not being depreciated:

Land $ 3, 565, 179 $ $ - $ 3, 565, 179
Construction in Progress 10, 635, 238 7, 217,07 ( 3, 172, 791) 14, 679,54 Total capital assets not being depreciated 14, 200, 417 7, 217,07 ( 3, 172, 791) 18, 244, 833 Capital assets being depreciated:

Buildings 3, 072 - 3, 072
Improvements 235, 815, 251 28, 932, 796 3, 172, 791 267, 920, 838 Equipment and Vehicles 1, 630, 365 275, 10 1, 905, 515
Net capital assets being depreciated 237, 448, 688 29,07, 946 3, 172, 791 269, 829, 425 Less accumulated depreciation:

Buildings ( 3, 042) ( 15) - ( 3, 057)
Improvements ( 59, 754,48) ( 5, 653, 028) - ( 65, 407, 776) Equipment and Vehicles ( 1, 089, 793) ( 117, 908) - ( 1, 207, 701) Total accumulated depreciation ( 60, 847, 583) ( 5, 770, 951) ( 66,18, 534) Net capital assets being depreciated 176, 601, 105 23, 436, 995 3, 172, 791 203,10, 891 Business -type Activities Capital Assets, Net $ 190, 81, 522 $ 30, 654, 202 $ - $ 221, 455, 724 B. Capital Asset Contributions
Some capital assets may be acquired using federal and State grant funds, or they may be contributed by developers or other governments. These contributions are required to be accounted for as revenues at the time the capital assets are contributed.

C. Depreciation Allocation
Depreciation expense is charged to functions and programs based on their usage of the related assets.

The amounts allocated to each function or program are as follows:

Governmental Activities:

General government $ 431,66
Community development 254, 793
Public safety 482, 661
Public works 10, 576, 165
Culture and leisure 77,91
Total Governmental Activities $ 11, 822,76
67 City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

4. CAPITAL ASSETS, Continued
C. Depreciation Allocation, Continued
Business -Type Activities:

Water $ 2, 432, 538
Sewer 3,38, 413
Total Business -Type Activities $ 5, 770, 951

5. COMPENSATED ABSENCES
The following is a
summary of changes in the City' scompensated absences for the fiscal year ended June 30, 2023:

Balance Balance Due within
June 30, 2022 Additions Retirements June 30, 2023 one year Governmental activities $ 2, 094, 974 $ 379, 050 $ 35, 815 $ 2, 438, 209 $ Business -type activities 81, 537 13, 537 2,26 92, 848
Total 2, 176, 511 $ 392, 587 $ 38, 041 $ 2, 531, 057 $

6. LOANS PAYABLE & OTHER LONG- TERM DEBT
A. The City' s
Loans Payable & Other Long -Term Debt
The City' slong- term debt activities for the year ended June 30, 2023, is as follows:

Balance Balance
Governmental Activities Long -Term Debt June 30, 2022 Retirements June 30, 2023 Current Portion Financing Agreement Obligation
2016 Financing Agreement

2. 55%, due 07/ 15/ 2029
Total Governmental Activities
2, 745, 000 $ 315, 000 $ 2, 430, 000 $ 320, 00
2, 745, 000 $ 315, 000 $ 2, 430, 000 $ 320, 00
Balance Balance
Business -type Activities Long -Term Debt June 30, 2022 Retirements June 30, 2023 Current Portion Capital Loan Obligation
2017 Bank Loan

2. 89%, due 06/1/ 2032 $ 8, 177, 936 $ 716, 294 $ 7, 461, 642 $ 737, 145 State Revolving Fund Loan

2. 3086%, due 07/1/ 2032 5,54, 128 482, 716 5, 071, 412 477, 753 Compass Bank Loan

3. 50%, due 06/1/ 2029 3, 010,37 386, 82 2, 623, 175 400, 664 Total Business -type Activities $ 16, 742, 101 $ 1, 585, 872 $ 15,56, 229 $ 1, 615, 562 68 City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

6. LOANS PAYABLE & OTHER LONG- TERM DEBT, Continued
B. Debt Service Requirements
Future principal and interest payments on all governmental and business - type long- term debt are as follows at June 30, 2023:

Business -Type Activities:

For the Year
Ending June 30
Governmental Activities:

For the Year
Ending June 30
Direct Borrowings
2016 Financing Agreement
Principal Interest
2024
2025
2026
2027
2028
2029-033
Total
320, 00
330, 00
340, 00
345, 000
360, 00
735, 000
57, 885
49, 598
41, 055
32,21
23, 333
18, 934
2, 430, 000 $ 223, 126
Direct Borrowings
2017 Bank Loan State Revolving Fund Loan Compass Bank Loan Principal Interest Principal Interest Principal Interest 2024
2025
2026
2027
2028
2029-033
737, 145
758, 604
780, 687
803, 412
826,00
3, 554, 994
210, 316
188, 857
166, 774
144, 08
120, 660
234, 88
477, 753
494,89
505, 970
517, 719
529, 740
2, 545, 741
119, 820
108, 727
97, 376
85, 762
73, 878
181, 249
400, 664
414, 810
429,55
444, 618
460, 316
473, 312
88, 336
74, 190
59,44
44, 382
28, 684
12, 432
Total $ 7, 461, 642 $ 1, 065, 503 $ 5, 071, 412 $ 666, 812 $ 2, 623, 175 $ 307, 568 69 City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

6. LOANS PAYABLE & OTHER LONG- TERM DEBT, Continued
C. Description of the City' s
Loans Payable & Other Long -Term Debt Issues
City Hall Loan - On June 1, 2016, the City entered into a financed purchase with the Lathrop Financing Authority (Authority) for the existing City Hall building, in the amount of $4, 190, 000 with a 2. 55% annual interest rate. On the same date, the Authority assigned its rights under the purchase agreement to Capital One Public Funding, LLC. The proceeds of the financed purchase obligation, together with available funds from the City, were used to advance refund the outstanding 2004 Obligation amounting to 6,40, 000. A total of $6, 787, 680 was deposited into an irrevocable trust with an escrow agent to provide funds for the future debt service payment on the refunded 2004 Obligation. As a result, the 2004 Obligation was considered defeased and the liability for the 2004 Obligation has been removed from the Statement of Net Position as of June 30, 2016. On July 15, 2016, the 2004 Obligation was prepaid fully. This advance refunding reduced the City' s
total debt service payments over 15 years by $ 2, 901, 765 and obtained an economic gain ( difference between the present values of the debt service payments on the old and new debt) of $950, 783. Due to the timing of debt service payments on July 15th of each year, the City prepays the principal and interest.

The 2016 City Hall Financing Obligation is secured by the City Hall building at 390 Towne Centre Drive, Lathrop, California. The outstanding amount contains a provision that in an event of default, Lathrop Financing Authority may terminate the agreement, rent out all or any portion of the property, or hold the City liable for the payment of all base rental obligations and be reimbursed for any deficiency arising out of re -renting the property.
2017 Bank Loan - On May 18, 2017, the City entered into a loan agreement with Opus Bank, in the amount of $11, 455, 000 with a 2. 89% annual interest rate. The purpose of the loan proceeds was to refinance the 2003 Revenue Bonds. A total of $11, 328, 241 was deposited into an irrevocable trust with an escrow agent to provide funds for the future debt service payment on the refunded 2003 Bonds. As a result, the 2003 Bonds were considered defeased and the liability for the 2003 Bonds had been removed from the Statement of Net Position as of June 30, 2017. On June 1, 2017, the 2003 Bonds were repaid fully. This refunding reduced the City' s
total debt service payments over 15 years by $ 6, 829, 468 and obtained an economic gain ( difference between the present values of the debt service payments on the old and new debt) of $3, 857, 309. The interest and principal payments are due June 1 and December 1.

State Revolving Fund Loan - The City entered into an agreement with the California Department of Public Health in the amount of $10, 929, 000. Funds are for the Water Supply Arsenic Reduction Project.

Repayment of this loan started on January 1, 2013. Terms of the note include atwenty- year repayment period and a 2.3% interest rate. Principal and interest payments are paid semiannually. The City' s net
water system revenues have been pledged for the repayment of debt service on loan.

The State Revolving Fund Loan is secured by a promissory note. The outstanding loan amount contains a provision that in an event of default, the State can declare the City' s obligation immediately due and payable.
70 City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

6. LOANS PAYABLE & OTHER LONG- TERM DEBT, Continued
C. Description of the City' s
Loans Payable & Other Long -Term Debt Issues, Continued Compass Bank Loan - During fiscal year 2011- 12, the City entered into a loan agreement with Compass Bank in the amount of $6, 203, 000. The proceeds from the loan were used to refund the 2000A Certificates of Participation ( 2000A COPs). Interest on the Compass Loan is payable semi- annually on December 1 and June 1 of each year through the year 2029. Repayment of this loan started on December 1, 2012.

The 2017 Bank Loan and Compass Bank Loan are secured by a pledge of and lien on the net revenues of the Water System. The outstanding loan amount contains a provision that in an event of default, the loans will bear interest at the default rate, a rate of interest equal to the interest rate plus 3 percent and 5 percent, respectively, or the outstanding loan amount may become immediately due and payable.

For the fiscal year June 30, 2023, net revenues of the Water Enterprise Fund amounted to $ 2, 839, 196 which represented coverage of 2. 57 times the $1,03,56 debt service on the 2017 Bank Loan and Compass Bank Loan.

7. SPECIAL ASSESSMENT/ COMMUNITY FACILITY DISTRICT DEBT WITHOUT CITY

COMMITMENT
Special Assessment Districts in various parts of the City have issued debt to finance infrastructure improvements and facilities within their boundaries. The City is the collecting and paying agent for the debt issued by these Districts but has no direct or contingent liability or moral obligation for the payment of this debt. Therefore, this debt is not included as long- term debt of the City. The outstanding balance of each of these issues as of June 30, 2023 is as follows:

Mossdale Assessment District Refunding 2015 $ 4, 605, 000 Lathrop Financing Authority Special Tax Revenue Bonds
Mossdale Village Reassessment District No. 2013- 1) 2013 Series 7, 590, 000 Lathrop Financing Authority Special Tax Revenue Bonds
Community Facilities No. 2003- 1) 2013 Series A 4, 745, 000 Crossroad Assessment District Series 2015 8, 655, 000
Joint Wastewater Project CFD 2003- 4, 725, 000
Lathrop Sanitary Sewer Assessment District No. 1 160, 00 Community Facilities District No. 2018- 1 12, 570, 000
71 City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

8. LEASES AND SUBSCRIPTION - BASED INFORMATION TECHNOLOGY ARRANGEMENTS The City records several leases payable for tangible assets, as well as on software subscriptions SBITAs).

Lease and SBITA agreements are summarized as follows:

Payment Payment Interest
Description Date Terms Amount Rate
Balance
June 30, 2023
Storage server
Rubrik data backup
Police cameras and tasers
Camera software
Integrated police software
2/8/021 3 years $ 3, 204 0.0%
7/ 26/022 3 years 3, 547 0.0%
3/ 15/ 2023 4- 5 years 90, 519 0.0%
3/ 15/ 2023 4- 5 years 85, 975 0.0%
3/ 13/ 2023 5 years 110, 00 0.0%
22, 429
85, 130
292,89
254, 93
440, 00
Total Leases and SBITAs $ 1, 094, 791
Integrated police software - original subscription amount: $ 550, 00 - The software provided by Peregrine Technologies Inc. provides a real time data analysis and visualization systems that integrates data from a broad range of law enforcement software, including Computer Aided Dispatch ( CAD) provided by RIMS, Records Management System ( RMS) provided by RIMS, License Plate Readers ( LPR) provided by Vigilant insight, and Flock Fleet 3, Video Management System (VMS) provided by Avigilon and Digital Evidence Management System ( DEMS) provided by Evidence. com.

Police cameras and tasers, and related camera software - original lease amount: $ 438, 076, original subscription amount: $412, 51 - Axon Enterprises, Inc. provides body cameras, tasers and in car video equipment to the City' s police force. The Axon system unifies the operation of body cameras, tasers and in car video and provides storage for all the data gathered from them. The system allows retrieval and use that complies with all legal requirements and is easily retrievable by all authorized personnel. The equipment will be maintained by Axon and will be replaced when necessary, avoiding the need for highly technical staff support and assuring the equipment remains functional and evidence produced will be legally viable. Axon also provides training and support for all their products leased by the City.

Storage server - original lease amount $ 115, 348 - Hewlett Packard Financial Services leases a storage
server to the City which is ultimately used by all departments.

Rubrik data backup - original lease amount $ 127, 695 - Hewlett Packard Financial Services leases a Rubrik backup server which is indirectly used by all departments. 72 City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

8. LEASES AND SUBSCRIPTION - BASED INFORMATION TECHNOLOGY ARRANGEMENTS, Continued
Annual requirements to amortize long- term obligations and related interest are as follows:

Year Ending
June 30 Principal Interest
2024 $ 351, 487 $
2025 329, 058
2026 283, 511
2027 130, 735
1, 094, 791 $

9. FUND BALANCE
A. Minimum Fund Balance Policies
The City Council has established a fund balance reserve policy with the adoption of resolution 10- 3102 that deemed it desirable for the City to retain a contingency reserve level of 50% of the adjusted appropriation for any given year. The reserve balance shall not be reduced below 10% of the General Fund' s
adjusted appropriations. The contingency reserve is allocated to two categories: Economic Uncertainty Reserve, and Exposure and Emergency Reserves.

The Economic Uncertainty Reserve consists of 75% of the Contingency Reserve Balance. It is maintained to minimize the effects of major economic uncertainties, including local disasters, State budget deficits and other severe financial hardships or unforeseen changes in revenues and/ or expenditures and is available for budget stabilization. At June 30, 2023, the Economic Uncertainty Reserve amounted to 5, 284, 153.

The Exposure and Emergency Reserves consist of 25% of the Contingency Reserve Balance. Exposure Reserves are maintained to minimize the immediate financial impact of potential costs not covered by the City' s
insurance program, such as claim costs within the City' s deductibles, major costs associate with disasters and other events which will not be reimbursable by insurance, or Federal or State Government.

Emergency Reserve is maintained to minimize all unforeseen events not covered in the Economic Uncertainty Reserve and Exposure Reserves. At June 30, 2023, the Exposure and Emergency Reserves amounted to $ 1, 761, 384.
73 City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

9. FUND BALANCE, Continued
B. Fund Balances
Detailed classifications of the City' s
fund balances, as of June 30, 2023, are below:

Building Other
Capital Safety & Streets and Roads General CIP Governmental General Fund Facilities Fee Inspection Capital Projects Projects Funds Total Nonspendables:

Items not in spendable form:

Advances to other funds $ 9, 371,05 $ - $ $ - $ - $ - $ 9, 371,05 Prepaids 394, 832 - - - - 394, 832
Total Nonspendable 9, 766, 137 - - 9, 766, 137
Restricted for:

Recycling projects
Capital Projects
Public safety
Traffic and transportation
Parks and recreation
Streets and roads contracts
Measure K
Community improvements
Total Restricted
10, 077, 353 11, 969,31
16, 825, 738
17, 622, 289
8, 624, 058
1, 386, 731 1, 386, 731
12, 340, 566 27, 643, 754 62, 031, 604
159, 81 334, 518 494,09
126, 759 25, 576,55
1, 092, 420 1, 734, 092 20, 448, 801
14, 355,11 14, 355,11
666, 837 666, 837
73, 122 73, 122
44, 525, 380 11, 969,31 8, 624, 058 13, 592, 877 46, 321, 124 125, 033, 370 Committed to:

Contingency/ emergency 7, 045, 537
Fiscal stabilization 1, 850, 000
Capital projects
Street reserves 9, 464, 340
Landscape reserves 3, 000,00
Public safety
Traffic and transportation
Parks and recreation
Retirement stability 4, 900, 000
Water & sewer rate stabilization 4, 747,25
Capital equipment 2, 937, 190
Measure C essential city services 6, 058,49
Economic development 444, 672
2, 664, 730
96,39
949,9
2, 101, 347
1, 742, 994
7, 045, 537
1, 850, 000
96,39
9, 464, 340
3, 949,99
2, 101, 347
2, 664, 730
1, 742, 994
4, 900, 000
4, 747,25
2, 937, 190
6, 058,49
444, 672
Total Committed 40,47, 513 2, 664, 730 4, 891, 279 - 48, 003, 522 Unassigned:

Fund deficits - ( 409, 608) ( 409, 608)
Residual fund balance 6, 145, 676 - - 6, 145, 676
Total Unassigned 6, 145, 676 ( 409, 608) 5, 736, 068
Total Fund Balances $ 56, 359,26 $ 44, 525, 380 $ 11, 969,31 $ 11, 288, 788 $ 18, 484, 156 $ 45, 911, 516 $ 188, 539, 097 MEIL
74 City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

9. FUND BALANCE, Continued
C. Encumbrances
The City utilized an encumbrance system during fiscal year 2023 to assist in controlling expenditures.

Under this system, governmental funds are encumbered when purchase orders, contracts, or other commitments are signed or approved. The following are encumbrances at June 30, 2023, that will be carried over to the following fiscal year:

General Fund
Building Safety & Inspection Special Revenue Fund
Streets and Roads Capital Project Fund
General CIP Projects
Non -Major Funds

10. PENSION PLAN
6, 037, 482
259, 304
298, 009
578,7
1, 094, 585
A. General Information about the Pension Plan
Plan Description - All qualified permanent and probationary employees are eligible to participate in the Public Agency Cost -Sharing Multiple -Employer Defined Benefit Pension Plan ( Plan) administered by the California Public Employees' Retirement System ( Ca1PERS). The Plan consists of individual rate plans benefit tiers) within a safety risk pool ( police and fire) and a miscellaneous risk pool ( all other). Plan assets may be used to pay benefits for any employer rate plan of the safety and miscellaneous risk pools.

Accordingly, rate plans within the safety or miscellaneous pools are not separate plans under GASB Statement No. 68. Individual employers may sponsor more than one rate plan in the miscellaneous or safety risk pools. The City sponsors 4 rate plans ( 3 miscellaneous and 1 safety). Benefit provisions under the Plan are established by State statute and City resolution. Ca1PERS issues publicly available reports that include a full description of the pension plan regarding benefit provisions, assumptions, and membership information that can be found on the Ca1PERS website.

Benefits Provided - Ca1PERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members who must be public employees, and beneficiaries.

Benefits are based on years of credited service, equal to one year of full- time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non -duty disability benefits after 10 years of service. The death benefit is one of the following:
the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees' Retirement Law. 75 City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

10. PENSION PLAN, Continued
A. General Information about the Pension Plan, Continued The Plan' s
provisions and benefits in effect at June 30, 2023, are summarized as follows:

Miscellaneous
Classic Tier 2
Hire Date
Benefit formula
Benefit vesting schedule
Benefit payment
Retirement age
Monthly benefits, as a % of annual salary
Required employee contribution rates
Required employer contribution rates
Required UAL payment
Prior to
January 1, 2013
2% 55
5 years service
Monthly for life
55 2. 00%

6. 92%

11. 84%
621, 595
July 1, 2010 to
December 31, 2012
Hire Date
Benefit formula
Benefit vesting schedule
Benefit payment
Retirement age
Monthly benefits, as a % of annual salary
Required employee contribution rates
Required employer contribution rates
Required UAL payment
2%© 60
5 years service
Monthly for life
60 2. 00%

6. 93%

10.0%
14, 776
Safety - PEPRA
On or after
January 1, 2013
2% @57
5 years service
Monthly for life
57 2. 70%

14. 50%

14. 72%
0 PEPRA
After
December 31, 2012
2% @ 62
5 years service
Monthly for life
62 2. 00%

7.5%

7. 68%
9, 885
Contributions - Section 20814( c) of the California Public Employees' Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for the Plan are determined annually on an actuarial basis as of June 30 by Ca1PERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.

For the measurement period ended June 30, 2022, the City' s total contributions to the Plan were $1, 200, 855.

B. Pension Liabilities, Pension Expenses and Deferred Outflows/ Inflows of Resources Related to Pensions As of June 30, 2023, the City reported a net pension liability for its proportionate share of the net pension liability ( asset) of the Plan of $ 7, 966, 383.
76 City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

10. PENSION PLAN, Continued
B. Pension Liabilities, Pension Expenses and Deferred Outflows/ Inflows of Resources Related to Pensions, Continued
The City' snet pension liability for the Plan is measured as the proportionate share of the, and the total pension liability for the Plan used to calculate the net pension liability was determined by actuarial valuations as of June 30, 2021 rolled forward to June 30, 2022 using standard update procedures. The City' s proportionate share of the net pension liability was based on the Agency' s plan liability and asset - related information where available, and proportional allocations of individual plan amounts as of the valuation date where not available.

The City' s proportionate share of the net pension liability for the Plan as of the measurement dates June 30, 2021 and 2022 were as follows:

Proportion - June 30, 2021 0.5487%
Proportion - June 30, 2022 0.6897%
Change - Increase ( Decrease) 0.1410%
For the year ended June 30, 2023, the City recognized pension expense of $1, 601, 901. At June 30, 2023 the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred Deferred
Outflows of Inflows of
Resources Resources
Pension contributions subsequent to measurement date $ 2, 013, 295 $ Changes in assumptions 816, 323
Differences between actual and expected experience 159, 980 107,48 Changes in employer' sproportion 559, 250 -
Difference in proportionate share of contributions - 280, 788 Net difference projected and actual investment earnings 1, 459, 233 - Total 5, 008,81 $ 387, 936
77 City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

10. PENSION PLAN, Continued
B. Pension Liabilities, Pension Expenses and Deferred Outflows/ Inflows of Resources Related to Pensions, Continued
2, 013, 295 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2024. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Year Ending Annual
June 30 Amortization
2024 $ 755, 503
2025 627, 014
2026 331, 87
2027 892, 516
Actuarial Assumptions - For the measurement period ended June 30, 2021, the total pension liability was determined using the following assumptions:

Valuation date June 30, 2021
Measurement date June 30, 2022
Actuarial cost method Entry -Age Normal Cost Method
Actuarial Assumptions:

Discount rate 6. 90%
Inflation 2. 30%
Projected salary increase Varies by Entry Age and Service Mortality rate table ( 1) Derived using Ca1PERS Membership Data for all Funds( 2) Post retirement benefit increase Contract COLA up to 2. 50% until Purchasing Power Protection Allowance Floor on Purchasing Power applies 2. 30% thereafter. 1) The mortality table used was developed based on Ca1PERS' specific data. The table includes 15 years of mortality improvements using the Society of Actuaries Scale 90% of scale MP 2016. For more details on this table, please refer to the December 2017 experience study report ( based on Ca1PERS demographic data from 1997 to 2015) that can be found on the Ca1PERS website.
78 City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

10. PENSION PLAN, Continued
B. Pension Liabilities, Pension Expenses and Deferred Outflows/ Inflows of Resources Related to Pensions, Continued
Discount Rate - The discount rate used to measure the total pension liability as of the measurement date of June 30, 2022 for the Plan was 6. 90%, which differs from the discount rate used as of the measurement date of June 30, 2021, of 7. 15%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan' s
fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long- term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability. A detailed report testing these projections can be obtained from the Ca1PERS website.

In determining the long- term expected rate of return, Ca1PERS took into account long- term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated and, combined with risk estimates, are used to project compound ( geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long- term projected portfolio return.

The expected real rate of return by asset class are as follows:

Current Target Real Return
Asset Class Allocation ( a, b)
Global Equity - cap -weighted 30. 00% 4.5%
Global Equity - non -cap -weighted 12. 00% 3. 84%
Private Equity 13. 00% 7. 28%
Treasury 5. 00% 0. 27%
Mortgage - backed Securities 5. 00% 0. 50%
Investment Grade Corporates 10. 00% 1. 56%
High Yield 5. 00% 2.7%
Emerging Market Debt 5. 00% 2. 48%
Private Debt 5. 00% 3. 57%
Real Assets 15. 00% 3. 21%
Leverage - 5. 00% - 0. 59%
Total 100%
a) - An expected inflation of 2. 30% used for this period. b) - Figures are based on the 2021-2 Asset Liability Management study. 79 City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

10. PENSION PLAN, Continued
B. Pension Liabilities, Pension Expenses and Deferred Outflows/ Inflows of Resources Related to Pensions, Continued
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate - The following presents the City' sproportionate share of the net pension liability for the Plan, calculated using the discount rate for the Plan, as well as what the City' s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1 -percentage point lower ( 5. 90%) or 1 - percentage point higher ( 7. 90%) than the current rate:
1% Decrease
Net Pension Liability
Current Discount Rate
Net Pension Liability
1% Increase
Net Pension Liability

5. 90%
12, 944, 507

6. 90%
7, 966, 383
790. 00%
3, 870, 624
Pension Plan Fiduciary Net Position - Detailed information about the pension plan' s fiduciary net position is available in the separately issued Ca1PERS financial reports.

At June 30, 2023, the City reported a payable of $ 0 for the outstanding amount of contributions to the pension plan required for the year ended June 30, 2023.

11. OTHER POST - EMPLOYMENT BENEFITS
A. General Information about the City' s
Other Post - Employment Benefit ( OPEB) Plan
Plan Description - The City' s Post - Employment Benefit Plan is an agent multiple -employer defined benefit OPEB plan.

By resolution and through agreements with its labor units, the City provides certain health care benefits for retired employees. The City in the Ca1PERS health care plan, which is governed under the California Public Employees Health and Medical Care Act (PEMCHA). The City also participates in the California Employers Retirees Benefit Trust (CERBT), an irrevocable trust established to fund OPEB. CERBT is an agent multiple -employer defined benefit other postemployment benefits plan administrated by Ca1PERS, and is managed by an appointed board not under the control of the City Council. CERBT consists of participating employers of the State of California and public agencies. Individual employers may establish more than one plan.
80 City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

11. OTHER POST - EMPLOYMENT BENEFITS, Continued
A. General Information about the City' s
Other Post - Employment Benefit ( OPEB) Plan, Continued The CERBT was established by Chapter 331 of the 1988 California Statutes, and employers elect to participate in the CERBT to pre -fund health, dental, and other non -pension postemployment benefits for their retirees and survivors. The CERBT has pooled administrative and investment functions, while separate employer accounts are maintained to prefund and pay for health care or other postemployment benefits in accordance with the terms of the participating employers' plans. There are three Ca1PERS Board approved investment strategies for employers to choose from depending on their expected levels of return and volatility. Benefit provisions are established by participating employers.

The CERBT Trust is not considered a
component unit by the City and has been excluded from these financial statements. Separately issued financial statements for CERBT may be obtained from CALPERS at P. O. Box 942709, Sacramento, California 94229- 2709.

Benefits Provided - The following is asummary of Plan benefits by employee group as of June 30, 2023:

Tier Hire Date Retirement Date Eligibility
Benefit Prior to Retiree' s (or Surviving
Spouse' s) Eligibility for Medicare
Benefit After Retiree' s (or Surviving
Spouse' s) Eligibility for Medicare
1 Before 7/ 1/ 2014
On or before
12/ 31/ 2014
Age 50 within 5
years of PERS
service
Benefit accourding to previous Unequal PEMHCA Resolution ( i.e., no change for this group). 100% of premium for the retiree and any eligible covered dependents, up to $ 1, 536 per month in 2018, increasing by $100 each calendar year until such time as it is equal to active employee per month in each City contribution.
2 Before 7/ 1/ 2014 After 12/ 31/ 2014
Age 50 within 5
years of PERS
service
PEMHCA Minimum Employer Contribution
MEC) PEMHCA Minimum Employer Contribution
Age 55 within 5 MEC)
years of PERS
service
100% of the premium for retiree plus one up
to the monthly cap for active employees*
2 After 7/1/ 2014 Any
Age 50 within 5
years of PERS
service
PEMHCA Minimum Employer Contribution
MEC)
PEMHCA Minimum Employer Contribution
Age 55 within 5 MEC)
years of PERS
service
100% of the premium for retiree and
dependants, up to the following percantages
of the monthly cap for active employees*
5 years of service: 25%
10 years of service: 50% 15
years of service: 100%
In 2023, the City contributed a maximum of $1, 915 per month toward medical coverage for active employees and their dependents. This amount will increase annually by 50% of premium increase for the median cost medical plan, not to exceed

5.% per year.

For the measurement period ended June 30, 2022, the City' scontributions to the Plan were $517, 163, which were comprised of contributions to the trust of $391, 544 and implicit subsidy payments of $125, 619. 81 City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

11. OTHER POST - EMPLOYMENT BENEFITS, Continued
A. General Information about the City' s
Other Post - Employment Benefit ( OPEB) Plan, Continued Employees Covered by Benefit Terms - Membership in the plan consisted of the following at the measurement date of June 30, 2022:

Active Employees 117
Inactive employees or beneficiaries currently receiving benefits 26 Inactive employees entitled to but not yet receiving benefits 8 Total 151
B. Net OPEB Liability
Actuarial Methods and Assumptions - The City' s
net OPEB liability was measured as of June 30, 2022,
and the total OPEB liability was determined by an actuarial valuation dated June 30, 2021. These are the following actuarial methods and assumptions:

Actuarial Assumptions
Valuation Date June 30, 2021
Measurement Date June 30, 2022
Actuarial Cost Method Entry -Age Normal Cost, level percent of pay Actuarial Assumptions:

Discount Rate 6. 10%
Inflation 2. 50%
Payroll Growth 3. 00%
Investment Rate of Return 6. 10%
Mortality Improvement MacLeod Watts Scale 2022 applied generationally from 2010 Healthcare Trend Rate 5.8% decreasing to 3.9% in 2076 and later Demographic actuarial assumptions used in this valuation are based on the 2021 experience study of the California Public Employees Retirement System using data from 1997 to 2019, except for a different basis used to project future mortality improvements.
82 City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

11. OTHER POST - EMPLOYMENT BENEFITS, Continued
B. Net OPEB Liability, Continued
The long- term expected rate of return on OPEB plan investments was determined using a building- block method in which best -estimate ranges of expected future real rates of return ( expected returns, net of OPEB plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long- term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of geometric real rates of return for each major asset class are summarized in the following table:

Asset Class Target Allocation
Global Equity 49. 00%
Fixed Income 23. 00%
Real Estate Investment Trusts 20. 00%
Treasury Inflation Protection Securities 5. 00%
Commodities 3. 00%
Total 100%
Change of Assumptions - For the measurement date of June 30, 2022, there were no changes in assumptions.

Discount Rate - The discount rate used to measure the total OPEB liability was 6. 10%. The projection of cash flows used to determine the discount rate assumed that City contributions will be made at rates equal to the actuarially determined contribution rates. Based on those assumptions, the OPEB plan' s fiduciary net position was projected to be available to make all projected OPEB payments for current active and inactive employees and beneficiaries. Therefore, the long- term expected rate of return on OPEB plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability.
83 City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

11. OTHER POST - EMPLOYMENT BENEFITS, Continued
C. Changes in Net OPEB Liability
The changes in the total OPEB liability follows:

Increase (Decrease)
Net OPEB
Total OPEB Plan Fiduciary Liability/( Asset)
Liability ( a) Net Position (b) ( c) = (a) - (b)
Balance at Measurement Date 6/ 30/ 2021 $ 6, 015, 883 $ 5, 767, 952 $ 247, 931 Changes Recognized for the Measurement Period:

Service Cost 301, 667 301, 667
Interest on the total OPEB Liability 374, 65 374, 65
Expected investment income -
Contributions from the employer
Changes in benefit terms 356, 849 ( 356, 849)
Administrative expenses 517, 163 ( 517, 163)
Other Expenses ( one time) - ( 1, 453) 1, 453
Benefit payments ( 351, 661) ( 351, 661)
Changes of assumptions - -
Plan experience -
Investment experience - ( 1, 387, 482) 1, 387, 482
Net changes 324, 651 ( 866, 584) 1,91, 235
Balance at Measurement Date 6/ 30/ 222 $ 6, 340, 534 $ 4, 901, 368 $ 1, 439, 166 D. Sensitivity of the Net OPEB Liability to Changes in the Discount Rate and Healthcare Cost Trend Rates
The following presents the total OPEB liability of the City, as well as what the City' s total OPEB liability
would be if it were calculated using a discount rate that is 1 -percentage - point lower ( 5. 80%) or 1 - percentage - point higher ( 7. 80%) than the current discount rate:

Net OPEB Liability/ (Asset)
Discount Rate
1% ( 5. 10%)
Discount Rate Discount Rate

6. 10%) + 1% ( 7. 10%)
2, 082,54 $ 1, 439, 166 $ 888, 328
84 City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

11. OTHER POST - EMPLOYMENT BENEFITS, Continued
D. Sensitivity of the Net OPEB Liability to Changes in the Discount Rate and Healthcare Cost Trend Rates, Continued
The following presents the net OPEB liability of the City, as well as what the City' s net OPEB liability
would be if it were calculated using healthcare cost trend rates that are 1 -percentage - point lower or 1 - percentage -point higher than the current healthcare cost trend rates:

Net OPEB Liability/ (Asset)
Healthcare Cost Trend Rates
1% Decrease Current Rate 1% Increase
792, 37 $ 1, 439, 166 $ 2,10, 478
E. OPEB Expenses and Deferred Outflows/ Inflozvs of Resources Related to OPEB For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City' s OPEB Plan and additions to/ deductions from the OPEB Plan' s fiduciary net position have been
determined on the same basis as they are reported by Ca1PERS. For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value.

For the year ended June 30, 2023, the City recognized OPEB expense of $396, 102. At June 30, 2023, the City reported deferred outflows and inflows of resources related to OPEB from the following sources:

Deferred Deferred
Outflows of Inflows of
Resources Resources
Employer contributions subsequent to measurement date $ 405, 006 $ Differences between actual and expected experience -
Changes in assumptions 121, 988
Net difference projected and actual earnings on plan investments 644, 480 Total
236, 849
34, 409
1,71, 474 $ 271,58
405, 006 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the OPEB liability in the year ended June 30, 2024. 85 City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

11. OTHER POST - EMPLOYMENT BENEFITS, Continued
E. OPEB Expenses and Deferred Outflows/ Inflows of Resources Related to OPEB, Continued Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized as part of OPEB expense as follows:

Year Ending
June 30
2024
2025
2026
2027
2028
Thereafter

12. RISK MANAGEMENT
Annual
Amortization
80, 735
71, 167
64, 549
265, 592
9, 918)
23, 085
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The City participates in the Central San Joaquin Valley Risk Management Authority ( CSJVRMA), a public entity risk poor currently operating as a common risk management and insurance program for 55 cities. The purpose of CSJVRMA is to spread the adverse effect of losses among the members and to purchase excess insurance as a group, thereby
reducing its expense.

The City' s
deductibles and maximum coverage follows:

Coverage Deductible
Workers Compensation $ 25, 000
General and automobile liability 25, 000
Property damage 5, 000 to 10, 000
High value auto program 2, 000
Boiler and machinery Various
Employment Practices Liability 25, 000
CSJVRMA Excess Liability ERMA
500, 00
1, 000,00
25, 000
10, 000 or 50, 000
1, 000,00
Statutory Limits
54, 000,00
1, 000,00
1, 000,00
2, 000,00 1, 000,00
The City contributes its pro rata share of anticipated losses to a pool administered by CSJVRMA. Should actual losses among participants be greater than the anticipated losses, the City will be assessed its pro rata share of that deficiency. Conversely, if the actual losses are less than anticipated, the City will be refunded its pro rata share of the excess. The City paid CSJVRMA premiums and ERMA premiums totaling $ 2,16, 127 during the fiscal year ended June 30, 2023. Settled claims have not exceeded commercial excess liability coverage in any of the past three fiscal years.

The City is also a member of Employment Risk Management Authority ( ERMA), which covers wrongful employment practices.

The City did not record a
liability for outstanding claims at fiscal year- end, as the claims were minimal. 86 City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

13. COMMITMENTS AND CONTINGENCIES
The City participates in several Federal and State grant programs. These programs are subject to audits by the City' sindependent accountants in accordance with the provisions of the Federal Single Audit Act as amended and applicable State requirements. No cost disallowances have been proposed as a result of these audits. However, these programs are still subject to further examination by the grantors and the amount, if any, of expenditures which may be disallowed by the granting agencies cannot be determined at this time. The City expects such amounts, if any, to be immaterial.

The City is subject to litigation arising in the normal course of business. These matters do not have a determined effect on the financial statements at this time.

14. PRIOR PERIOD ADJUSTMENTS
The City adjusted the opening balances for the following funds and reasons:

General Fund - to delay the recognition of ARPA revenues in order to match the expenditures made in the fiscal year ended June 30, 2023.

Nonmajor governmental funds - to add a missing corresponding receivable to match the payable that was accrued in the prior year.

Custodial funds - to remove the remaining " Due to Others" which was outstanding from before the implementation of GASB Statement 84 - Fiduciary Activities.

Enterprise funds and custodial funds - to move a water sub -fund to custodial due to the nature of the sub -fund.

Prior Period Adjustments
Fund Balance, as Fund Balance, as
Previously Reported Grant ARPA Restated at
at June 30, 2022 Receivables Revenue June 30, 2022
Governmental Funds:

General Fund
Nonmajor governmental
funds
52, 874, 312 $
37, 850, 747
2, 928, 427) $ 49, 945, 885
518, 438 38,69, 185
Net Position, as Net Position, as
Previously Reported Grant ARPA Restated at
at June 30, 2022 Receivables Revenue June 30, 2022
Statement of Net Position:

Governmental activities $ 421, 251, 014 $ 518, 438 $ ( 2, 928, 427) $ 418, 841, 025 87 City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

14. PRIOR PERIOD ADJUSTMENTS, Continued
Prior Period Adjustments
Net Position, as Prior Period Net Position, as
Previously Reported Adjustment for Water Sub -fund Restated at at June 30, 2022 Due to Others Recategorization June 30, 2022 Proprietary Funds:

Water Fund 88, 417, 047 $ - $ ( 2, 417,84) $ 85, 999, 563 Statement of Net Position:

Business -type activities $ 246, 497, 872 $ ( 2, 417,84) $ 244, 080, 388 Fiduciary Funds:

Custodial Funds 4, 298, 198 $ 4, 523, 962 $ 2, 417,84 $ 11, 239, 644 88 REQUIRED

SUPPLEMENTARY INFORMATION
City of Lathrop
Required Supplementary Information
For the year ended June 30, 2023
Cost Sharing Multiple Employer Plan
Schedule of Proportionate Share of the Net Pension Liability - Last 10 Fiscal Years 6/ 30/ 215 6/ 30/ 216 6/ 30/ 217 6/ 30/ 218
Proportion of the net pension liability 0.5770% 0.4556% 0.4980% 0.5243% Proportionate share of the net pension liability $ 3, 590, 219 $ 3, 127, 249 $ 4, 309, 662 $ 5, 199, 968 Covered payroll $ 4, 501, 607 $ 4, 364,10 $ 5, 148, 017 $ 5,68, 372 Proportionate share of the net pension
liability as percentage of covered payroll 79.5% 71. 66% 83. 71% 93. 38% Plan' s (PERF- C) fiduciary net position
as a
percentage of the total pension liability 79. 82% 78. 40% 74. 06% 73. 31% Notes to the schedule:

Fiscal year 2015 was the 1st year of implementation, therefore only nine years are shown.

The CaIPERS discount rate was increased from 7.5% to 7. 65% in fiscal year 2016, decreased from 7. 65% to 7. 15% in fiscal year 2018, and then decreased from 7. 15% to 6.9% in fiscal year 2023.

The Ca1PERS mortality assumptions were adjusted in fiscal year 2019. 90 6/ 30/ 219 6/ 30/ 220 6/ 30/ 221 6/ 30/ 222 6/ 30/ 223

0.5269% 0.5586% 0.5897% 0.5487% 0.6897%
5, 077, 307 $ 5, 723,99 $ 6, 416, 539 $ 2, 967, 660 $ 7, 966, 383 6, 004, 176 $ 6, 384, 728 $ 6, 808, 162 $ 7, 021, 189 $ 8, 113, 507

84. 56% 89. 65% 94. 25% 42. 27% 98. 19%

75. 26% 75. 26% 75. 10% 88. 29% 76. 68%
City of Lathrop
Required Supplementary Information
For the year ended June 30, 2023
Cost Sharing Multiple Employer Plan
Schedule Of Plan Contributions - Last 10 Fiscal Years
Miscellaneous Rate Plan 2015 2016 2017 2018
Actuarially determined contribution $ 523, 329 $ 369, 225 $ 434, 033 $ 465, 746 Contributions in relation to actuarially
deemed contributions ( 523, 329) ( 369, 225) ( 434, 033) ( 465, 746) Contribution deficiency ( excess) $ - $ - $ - $
Covered payroll $ 4, 364,10 $ 5, 148, 017 $ 5,68, 372 $ 6, 004, 176 Contributions as a percentage of
covered payroll 11. 99% 7. 17% 7.9% 7.6%
Note to Schedule:

Fiscal year 2015 was the 1st year of implementation, therefore only nine years are shown.

Methods and assumptions used to determine contribution rates:

Valuation date (for contractually
required contribution): 6/ 30/ 212 6/ 30/ 213 6/ 30/ 214 6/ 30/ 215 Actuarial cost method: Entry Age Entry Age Entry Age Entry Age Amortization method: ( 1) ( 1) ( 1) ( 1)
Assets valuation method Market Value Market Value Market Value 15 Year Smoothed
Market Method
Inflation 2. 75% 2. 75% 2. 75% 2. 75%
Salary Increases ( 2) ( 2) ( 2) ( 2)
Investment rate of return 7. 50% 7. 50% 7. 50% 7. 50%
Retirement age ( 3) ( 3) ( 3) ( 3)
Mortality ( 4) ( 4) ( 4) ( 4)
1) Level percentage of payroll, closed
2) Depending on age, service, and type of employment
3) 50 for all plans, with the exception of 52 for Miscellaneous PEPRA 2%© 62 4) Mortality assumptions are based on mortality rates resulting from the most recent Ca1PERS Experience Study adopted by the Ca1PERS Board.
92 2019 2020 2021 2022 2023
766, 989 $ 917, 56 $ 1, 062, 215 $ 1, 200,71 $ 2, 013, 295 766, 989) ( 917, 576) ( 1, 062, 215) ( 1, 200,71) ( 2, 013, 295) 6, 384, 728 $ 6, 808, 162 $ 7, 021, 189 $ 8, 113, 507 $ 12, 345, 922

12. 01% 13. 48% 15.3% 14. 79% 16. 31%
6/ 30/ 216 6/ 30/ 217 6/ 30/ 218 6/ 30/ 219 6/ 30/ 220
Entry Age Entry Age Entry Age Entry Age Entry Age
1) ( 1) ( 1) ( 1) ( 1)
Market Value Market Value Market Value Market Value Market Value

2. 75% 2. 63% 2. 50% 2. 50% 2. 50%
2) ( 2) ( 2) ( 2) ( 2)

7. 375% 7. 25% 7. 00% 7. 00% 7. 00%
3) ( 3) ( 3) ( 3) ( 3)
4) ( 4) ( 4) ( 4) ( 4)
City of Lathrop
Required Supplementary Information
For the year ended June 30, 2023
Schedule of Changes in the Net OPEB Liability and Related Ratios - Last 10 Fiscal Years* Fiscal year End
Total OPEB Liability
Service cost
Interest on the total OPEB liability
Differences between expected and actual experience
Changes of assumptions
Benefit payments
Net change in the total OPEB liability
Total OPEB liability - beginning
Total OPEB liability - ending ( a)
Plan Fiduciary Net Position
Contribution - employer
Net investment income
Benefit payments
Other expense
Administrative expense
Net change in plan fiduciary net position
Plan fiduciary net position - beginning
Plan fiduciary net position - ending ( b)
Net OPEB Liability - ending ( a) - (b)
Plan fiduciary net position as a percentage of the total OPEB liability Covered - employee payroll
Net OPEB liability as a
percentage of covered -employee payroll
Assumptions used to develop the results are shown below:

Measurement Date
Discount Rate
Valuation Data
Actuarial Cost method
Amortization method:

Assets valuation method
Inflation
Healthcare cost trend rates
Salary Increases
Discount Rate
Retirement age
Mortality
Mortality Improvement
6/ 30/ 218 6/ 30/ 219 6/ 30/ 220 6/ 30/ 221
228, 075 $ 231, 377 $ 238, 897 $ 247, 448
366, 237 359, 416 378, 925 372, 499
430, 189) ( 134, 660) -
42, 010 ( 62, 441)
299, 940) ( 314, 423) ( 324, 785) ( 404, 32)
93, 787) 276, 370 95,36 215, 605
5, 154,31 5, 060, 344 5, 336, 714 5, 432, 650
5, 060, 344 $ 5, 336, 714 $ 5, 432, 650 $ 5, 648, 255
471, 077 $
307, 58
299, 940)
1, 576)
495, 719
276, 193
314, 423)
4, 582)
1, 813)
477, 139 451, 094
2, 984, 872 3, 462, 011
459, 510 $ 486, 383
230, 777 151,73
324, 785) ( 404, 32)
825) ( 2, 094)
364, 677 231, 120
3, 913, 105 4, 277, 782
3, 462, 011 $ 3, 913, 105 $ 4, 277, 782 $ 4, 508, 902
1, 598, 333 $ 1, 423, 609 $ 1,54, 868 $ 1,39, 353

68. 41%
5, 982, 337 $

26. 72%

73. 32%
6, 377,87 $

22. 32%
6/ 30/ 217 6/ 30/ 218

7. 00% 7. 00%

78.4% 79. 83%
6, 358, 722 $ 6, 549, 484

18.6% 17. 40%
6/ 30/ 219 6/ 30/ 220

6. 80% 6. 80%
6/ 30/ 217 6/ 30/ 219
Entry Age Normal Entry Age Normal
Closed 30 years Closed 30 years
Market Value Market Value

2. 75% 2. 50%

7.5% in Jan 2019, step down
5% per year to 5.0% by 2024

5.4% in Jan 2021, Fluctuates
down to 4.0% by 2076

3. 25% 3%

7. 00% 6. 80%
From 50 to 75 From 50 to 75
2014 Ca1PERS Experience 2017 Ca1PERS Experience
MacLeod Watts Scale 2017 MacLeod Watts Scale 2018
Historical information is required only for measurement periods for which GASB 68 is applicable. Future years' information will be displayed up to 10 years as information becomes available. 94 6/ 30/ 222 6/ 30/ 223
254, 871 $ 301, 667
388, 811 374, 65
94, 590
370, 644) ( 351, 661)
367, 628 324, 651
5, 648, 255 6, 015, 883
6, 015, 883 $ 6, 340, 534
435, 828 $ 517, 163
308, 766 ( 1, 030, 633)
370, 644) ( 351, 661)
886, 742
1, 642) ( 1, 453)
1, 259, 050 ( 866, 584)
4, 508, 902 5, 767, 952
5, 767, 952 $ 4, 901, 368
247, 931 $ 1, 439, 166

95. 88% 77. 30%
7, 838, 544 $ 9,31, 244

3. 16% 14. 49%
6/ 30/ 221 6/ 30/ 222

6. 10% 6. 10%
6/ 30/ 221
Entry Age Normal
Closed 30 years
Market Value

2. 50%

5.8% in Jan 2023, decreasind
to 3.9% by 2076
3%

6. 10%
From 50 to 75
Ca1PERS 2021 Experience Study
MacLeod Watts Scale 2022
95 City of Lathrop
Required Supplementary Information
For the year ended June 30, 2023
Schedule of OPEB Contributions - Last 10 Fiscal Years*
Fiscal Year Ended 2018 2019 2020 2021 2022
Actuarially determined contribution
Contributions in relation to actuarially determined
contributions
Contribution deficiency ( excess)
Covered employee payroll
Contributions as a
percentage of covered employee
payroll
389, 509 $ 359, 460 $ 369, 969 $ 361, 138 $ 368, 85
495, 719) $ ( 459, 510) $ ( 396, 085) $ ( 435, 828) $ ( 517, 163) 106, 210) $ ( 100, 050) $ ( 26, 116) $ ( 74, 690) $ ( 148, 278) 6, 377,87 $ 6, 358, 722 $ 6, 549, 484 $ 7, 838, 544 $ 9,31, 244

6. 11% 5. 65% 5. 65% 4. 61% 3. 71%
Historical information is required only for the measurement periods for which GASB 75 is applicable. Fiscal Year 2018 was the first year of implementation. Future years' information will be displayed up to 10 years as information becomes available.

Notes to Schedule - assumptions used to develop Actuarially determined contribution Valuation Data
Actuarial Cost method
Amortization method:

Amortization Period:

Assets valuation method
Inflation
Healthcare cost trend rates
Salary Increases
Investment rate of return
Retirement age
Mortality
Mortality Improvement
7/ 1/ 2015
Entry Age
Normal Level %
of pay
Closed 30 Years
23 Yrs remain
Market Value

2. 75%

7.5% in Jan 2017,
step down to
5% per year to

4.5% by 2023

3. 25%

7. 00%
From 50 to 75
2014 CaIPERS
Experience
Study
MacLeod Watts
Scale 2014
6/ 30/ 217
Entry Age Normal Level % of pay
Closed 30 Years
22 Yrs remain 21 Yrs remain
Market Value

2. 75 %

7.5% in Jan 2019, step down to . 5%
per year to 5.0% by 2024

3. 25%

7. 00%
From 50 to 75
2014 Ca1PERS Experience Study
MacLeod Watts Scale 2017
6/ 30/ 219
Entry Age Normal Level % of pay
Closed 30 Years
20 Yrs remain 19 Yrs remain
Market Value

2. 50%

5.4% in Jan 2021, flucates down to

4.0% by 2076

3. 00%

6. 70%
From 50 to 75
2017 Ca1PERS Experience Study
MacLeod Watts Scale 2018
96 2023
405, 006
405, 006)
15, 989, 632

2. 53%
6/ 30/ 221
Entry Age
Normal Level %
of pay
Closed 30 Years
18 Yrs remain
Market Value

2. 50%

5.8% in 2023
decreasing to

3.9% by 2076

3. 00%

6. 10%
From 50 to 75
2021 Ca1PERS
Experience
Study
MacLeod Watts
Scale 2022
97 City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual General Fund
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Taxes and assessments $ 17, 650, 000 $ 23,51,57 $ 31, 612, 884 $ 8, 361, 627 Licenses and permits 243, 820 243, 820 347, 022 103, 202 Intergovernmental 2, 050,00 2, 050,00 9, 365, 468 7, 315, 468 Charges for services 859, 358 889, 066 763, 39 ( 125, 727) Use of money and property 257, 919 257, 919 2,84, 635 2, 026, 716 Fines and forfeitures 120, 00 120, 00 7, 893 ( 112,07)
Miscellaneous 275, 875 367, 101 273, 860 ( 93, 241)
Total revenues
EXPENDITURES:
21, 456, 972 27, 179,63 44, 655, 101 17, 475, 938
Current:

General government
City council 66, 180 89, 282 78, 142 11,40
City manager 962, 536 1,74, 234 995, 070 179,64
City clerk 372, 552 407, 147 407, 065 82
City attorney 796, 432 813, 42 784, 16 29,86
Personnel 492, 518 626, 085 561, 986 64, 099
Central services 1, 025, 550 1, 316,56 1,06, 253 210, 13 Finance 1, 818,79 2,33, 650 1, 725, 034 508, 616
Information technology 2, 080, 168 3, 227, 955 3, 086, 175 141, 780 Measure C 2, 550, 060 1, 205, 414 628, 70 576, 634
Total general government 10,64, 875 11, 093, 555 9, 372, 651 1, 720, 904 Public safety
Administration 6, 875, 421 11, 207, 633 9, 518, 177 1, 689, 456 Community services 771, 658 1, 666, 458 1, 083, 876 582,82 Total public safety 7, 647, 079 12, 874, 091 10, 602, 053 2,72, 038 Community development
Planning 1, 059, 763 2, 143, 604 1, 282, 316 861, 288
Total community development 1, 059, 763 2, 143, 604 1, 282, 316 861, 288 Culture and leisure
Administration 241, 370 451, 995 403, 164 48, 831
Senior center 175, 79 177, 419 161, 764 15, 655
Recreation programs 82, 628 218, 411 136, 737 81, 674
Special events 135, 384 277, 049 164, 598 112, 451
Youth development 643, 179 656, 444 432, 070 224, 374
Sports 236,35 267, 735 166, 781 100, 954
Facilitates and library 98, 523 169, 323 65, 742 103, 581 City hall - 425, 962 343, 104 82,58
Building maintenance 315, 109 261, 646 53, 463
Park and landscape maintenance - 769, 471 439, 147 330,24 Total culture and leisure 1, 613, 078 3, 728, 918 2, 574, 753 1,54,65 98 City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual General Fund, continued
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
Public works
Administration 805, 901 1,03, 239 709,2
Utility engineering 272, 959 290, 961 228, 834
393, 447
62, 127
Total public works 1, 078, 860 1, 394, 200 938, 626
Capital outlay 342, 484 2, 432, 718 2, 758, 535
Debt service:

Principal retirement 315, 000 315, 000 315, 000
Lease principal retirement - 367, 507 367, 507
Interest and fiscal charges 66, 000 66, 000 65, 981
Total expenditures

REVENUES OVER ( UNDER)

EXPENDITURES
455, 574
325, 817)
19 22,87, 139 34, 415, 593 28,77, 422 12, 602, 121
830, 167) ( 7, 236, 430) 16, 377, 679 23, 614, 109
OTHER FINANCING SOURCES ( USES):

Transfers in 6, 312, 070 10, 229, 905 7, 329, 195 ( 2, 900, 710) Transfers out ( 4, 167, 020) ( 21, 369, 566) ( 18, 755,31) 2, 613, 835 Lease proceeds - 1, 462, 298 1, 462, 298
Total other financing sources (uses) 2, 145, 050 ( 11,39, 661) ( 9,64, 238) ( 286, 875) Net change in fund balances 1, 314, 883 $ ( 18, 376, 091) 6, 413,41 $ 24, 789, 532 FUND BALANCES:

Beginning of year 52, 874, 312
Restatement ( 2, 928, 427)
Beginning of year, as restated 49, 945, 885
End of year $ 56, 359,26
99 City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Capital Facility Fees
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Taxes and assessments $ 17, 239,36 $ 17, 239,36 $ 11, 020,78 $ ( 6, 219, 158) Use of money and property - 704, 94 704, 94
Total revenues 17, 385, 124 17, 385, 124 11, 725, 022 ( 5, 660, 102) EXPENDITURES:

Current:

Public works 243, 763 10, 452, 984 10, 452, 983 1
Total expenditures 243, 763 10, 452, 984 10, 452, 983 1

REVENUES OVER ( UNDER)

EXPENDITURES
OTHER FINANCING SOURCES ( USES):
17,41, 361 6, 932, 140 1, 272, 039 ( 5, 660, 101)
Transfers in - 493, 042 493, 042
Transfers out ( 833, 407) ( 12, 300, 895) ( 12, 254, 580) 46, 315 Total other financing sources ( uses) ( 833, 407) ( 11, 807,53) ( 11, 761, 538) 46, 315 Net change in fund balances $ 16, 307, 954 $ ( 4, 875, 713) ( 10, 489,99) $ ( 5, 613, 786) FUND BALANCES:

Beginning of year 55, 014, 879
End of year $ 44, 525, 380
100
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Building Safety & Inspection
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Licenses and permits $ 2,31,93 $ 2,31,93 $ 1, 820, 591 $ ( 410, 702) Charges for services 1, 435,21 1, 435,21 3, 522, 093 2, 086, 672 Use of money and property - 179, 43 179, 43
Miscellaneous - 4, 663 4, 663
Total revenues
EXPENDITURES:
3, 666, 714 3, 666, 714 5,26, 840 1, 860, 126
Current:

Public works 2,89, 570 2, 864, 076 2, 049, 768 814, 308 Total expenditures 2,89, 570 2, 864, 076 2, 049, 768 814, 308

REVENUES OVER ( UNDER)
EXPENDITURES 1, 377, 144 802, 638 3, 477, 072 2, 674, 434 OTHER FINANCING SOURCES ( USES):

Transfers out ( 404, 270) ( 498, 620) ( 498, 620)
Total other financing sources ( uses) ( 404, 270) ( 498, 620) ( 498, 620) Net change in fund balances $ 972, 874 $ 304, 018 2, 978, 452 $ 2, 674, 434 FUND BALANCES:

Beginning of year 8, 991, 479
End of year $ 11, 969,31
101
City of Lathrop
Notes to Required Supplementary Information
For the Year Ended June 30, 2023

BUDGETS AND BUDGETARY ACCOUNTING
The City establishes annual budgets for the General and certain special revenue funds, which are adopted on a basis consistent with accounting principles generally accepted in the United States of America. The budgets for the General and certain special revenue funds are the only legally adopted budgets. Budgets for the capital project funds are used for management and control purposes only all appropriations remaining at fiscal yearend lapse. Budgeted amounts are reflected after all applicable amendments and revisions.

The legal level of control ( level at which expenditures may not legally exceed budget appropriations) is at the department level. If the expenditures exceed the appropriations, the City Manager is authorized to transfer budgeted amounts between the line items within any department or between divisions within the department.

During the fiscal year, the City made a number of supplemental budget amendments totaling X amount of dollars in revenues and Y amount of dollars in expenditures.

ADOPTED BUDGETS
For the fiscal year ending June 30, 2023, the Historic Lathrop Loan Program ( HLLP), the Lathrop Land Acquisitions, the DWR Grant - ULOP Project, the Stewart Economic Dev Fee 80%, and the TOT Trust Special Revenue Funds did not adopt an annual budget.
102

SUPPLEMENTARY INFORMATION
City of Lathrop
General Fund
Year Ended June 30, 2023
The general Fund is the City' s primary Operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. The General Fund is comprised of the following:

GENERAL PURPOSE FUND
This fund accounts for all financial resources except those to be accounted for in another fund. It is the general operating fund of the City.

ECONOMIC DEVELOPMENT FUND
To account for small business assistance grants approved by Council. The fund was reactivated in fiscal year 2020 due to the impacts of COVID- 19.

MEASURE C ESSENTIAL CITY SERVICES FUND
To account for revenue and expenditures for the city' s Measure C Essential City Services portion.
104
City of Lathrop
Combining Balance Sheet
General Funds
June 30, 2023
General Economic
Purpose Fund Development Measure C
Total
General
Funds
ASSETS
Cash and investments $ 40,77, 907 $ 443, 722 $ 4, 362, 234 $ 45, 283, 863 Receivables:

Accounts ( net of allowance for uncollectibles) 2, 628, 442 950 1, 711, 091 4, 340, 483 Accrued interest 84, 609 13, 200 97, 809
Prepaids 394, 832 - 394, 832
Advances to other funds 9, 371,05 - 9, 371,05
Total assets

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
52, 971, 699 $ 444, 672 $ 6, 086, 525 $ 59,02, 896
Liabilities:

Accounts payable $ 905, 896 $
Accrued liabilities 370, 077
Unearned revenue 740, 865
Deposits payable 1, 098, 256
28, 476 $ 934, 372
370, 077
740, 865
1, 098, 256
Total liabilities 3, 115, 094 28, 476 3, 143, 570
Fund Balances:

Nonspendable 9, 766, 137
Committed 33, 944, 792
Unassigned 6, 145, 676
444, 672
9, 766, 137
6, 058,49 40,47, 513
6, 145, 676
Total fund balances 49, 856, 605 444, 672 6, 058,49 56, 359,26 Total liabilities, deferred inflows of
resources and fund balances $ 52, 971, 699 $ 444, 672 $ 6, 086, 525 $ 59,02, 896 See accompanying Notes to Basic Financial Statements. 105 City of Lathrop
Combining Statement of Revenues, Expenditures and Changes in Fund Balances General Funds
For the year ended June 30, 2023
General Economic
Purpose Fund Development Measure C
Intrafund
Transactions
Elimination
REVENUES:

Taxes and assessments $ 21, 588, 748 $
Licenses and permits 347, 022
Intergovernmental 9, 365, 468
Charges for services 763, 39
Use of money and property 2, 190, 225
Fines and forfeitures 7, 893
Miscellaneous 273, 860
5, 776
10, 024, 136 $
88, 634
Total revenues 34, 536,55 5, 776 10,12, 770
EXPENDITURES:

Current:

General government 8, 743, 872
Public safety 10, 602, 053
Community development 1, 282, 316
Culture and leisure 2, 574, 753
Public works 938, 626
Capital outlay 2, 735, 307
Debt service:

Principal retirement 315, 000
Lease principal retirement 367, 507
Interest and fiscal charges 65, 981
Total expenditures
628, 779
23,28
27, 625, 415 652, 007

REVENUES OVER ( UNDER)
EXPENDITURES 6, 911, 140 5, 776 9, 460, 763
OTHER FINANCING SOURCES ( USES):

Transfers in 9, 614, 045 - ( 2,84, 850)
Transfers out ( 12,80, 720) - ( 8,59,61) 2,84, 850
Lease and software subscription proceeds 1, 462, 298 - - Total other financing sources ( uses) ( 1,04, 377) ( 8,59,61) Net change in fund balances 5, 806, 763 5, 776 600, 92
FUND BALANCES:

Beginning of year 46, 978, 269 438, 896 5, 457, 147
Restatement ( 2, 928, 427)
Beginning of year, as restated 44, 049, 842 438, 896 5, 457, 147 End of year $ 49, 856, 605 $ 444, 672 $ 6, 058,49 $
See accompanying Notes to Basic Financial Statements. 106 Total
General
Funds
31, 612, 884
347, 022
9, 365, 468
763, 39
2,84, 635
7, 893
273, 860
44, 655, 101
9, 372, 651
10, 602, 053
1, 282, 316
2, 574, 753
938, 626
2, 758, 535
315, 000
367, 507
65, 981
28,77, 422
16, 377, 679
7, 329, 195
18, 755,31)
1, 462, 298
9,64, 238)
6, 413,41
52, 874, 312
2, 928, 427)
49, 945, 885
56, 359,26
See accompanying Notes to Basic Financial Statements. 107 City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual General Purpose Fund
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Taxes and assessments $ 11, 650, 000 $ 13, 227, 120 $ 21, 588, 748 $ 8, 361, 628 Licenses and permits 243, 820 243, 820 347, 022 103, 202 Intergovernmental 2, 050,00 2, 050,00 9, 365, 468 7, 315, 468 Charges for services 859, 358 889, 066 763, 39 ( 125, 727) Use of money and property 257, 919 257, 919 2, 190, 225 1, 932, 306 Fines and forfeitures 120, 00 120, 00 7, 893 ( 112, 107) Miscellaneous 275, 875 367, 101 273, 860 ( 93, 241)
Total revenues 15, 456, 972 17,55, 026 34, 536,55 17, 381, 529 EXPENDITURES:

Current:

General government
City council 66, 180 89, 282 78, 143 11,39
City manager 962, 536 1,74, 234 995, 070 179,64
City clerk 372, 552 407, 147 407, 065 82
City attorney 796, 432 813, 42 784, 16 29,86
Personnel 492, 518 626, 085 561, 986 64, 099
Central services 1, 025, 550 1, 316,56 1,06, 253 210, 13 Finance 1, 818,79 2,33, 650 1, 725, 034 508, 616
Information technology 2, 080, 168 3, 227, 955 3, 086, 175 141, 780 Total general government 7, 614, 815 9, 888, 141 8, 743, 872 1,44, 269 Public safety
Finance 6, 875, 421 11, 207, 633 9, 518, 177 1, 689, 456 Community services 771, 658 1, 666, 458 1, 083, 876 582,82 Total public safety 7, 647, 079 12, 874, 091 10, 602, 053 2,72, 038 Community development
Planning
Total community development
1, 059, 763 2, 143, 604 1, 282, 316 861, 288
1, 059, 763 2, 143, 604 1, 282, 316 861, 288
Culture and leisure
Administration 241, 370 451, 995 403, 164 48, 831
Senior center 175, 79 177, 419 161, 764 15, 655
Recreation programs 82, 628 218, 411 136, 737 81, 674
Special events 135, 384 277, 049 164, 598 112, 451
Youth development 643, 179 656, 444 432, 070 224, 374
Sports 236,35 267, 735 166, 781 100, 954
Facilitates and library 98, 523 169, 323 65, 742 103, 581 City hall 425, 962 343, 104 82,58
Building maintenance 315, 109 261, 646 53, 463
Park and landscape maintenance 769, 471 439, 147 330,24 Total culture and leisure 1, 613, 078 3, 728, 918 2, 574, 753 1,54,65 108
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual General Purpose Fund
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
Public works
Administration
Utility engineering
Total public works
Capital outlay
Debt service:

Principal retirement
Lease principal retirement
Interest and fiscal charges
Total expenditures

REVENUES OVER ( UNDER)

EXPENDITURES
OTHER FINANCING SOURCES ( USES):

Transfers in
Transfers out
Lease proceeds
Total other financing sources ( uses)
Special item
Net change in fund balances $ 837, 423 $ ( 17, 964,54) 5, 806, 763 $ 23, 771,17 805, 901 1,03, 239 709,2
272, 959 290, 961 228, 834
393, 447
62, 127
1, 078, 860 1, 394, 200 938, 626 455, 574
342, 484 2,26, 718 2, 735, 307
315, 000 315, 000 315, 000
367, 507 367, 507
66, 000 66, 000 65, 981
508,9)
19 19, 737, 079 33, 004, 179 27, 625, 415 11, 266, 079
4, 280, 107) ( 15, 849, 153) 6, 911, 140 22, 760, 293
6, 312, 070 10, 229, 905 9, 614, 045 ( 615, 860)
1,94, 540) ( 12, 345, 706) ( 12,80, 720) 164, 986
1, 462, 298 1, 462, 298
5, 117, 530 ( 2, 115, 801) 1,04, 377) ( 450, 874)
FUND BALANCES:

Beginning of year
46, 978, 269
Restatement ( 2, 928, 427)
Beginning of year, as restated 44, 049, 842
End of year $ 49, 856, 605
109
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Economic Development
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Use of money and property
Total revenues

REVENUES OVER ( UNDER)

EXPENDITURES
5, 776 $ 5, 776
5, 776 5, 776
5, 776 5, 776
Net change in fund balances $
FUND BALANCES:

Beginning of year
End of year
5, 776 $ 5, 776
438, 896
444, 672
110
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Measure C
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Taxes and assessments $ 6, 000,00 $ 10, 024, 137 $ 10, 024, 136 $ ( 1) Use of money and property - 88, 634 88, 634
Total revenues 6, 000,00 10, 024, 137 10,12, 770 88, 633 EXPENDITURES:

Current:

General government
Measure C 2, 550, 060 1, 205, 414 628, 779 576, 635
Total general government 2, 550, 060 1, 205, 414 628, 779 576, 635 Capital outlay - 206, 000 23,28 182, 772
Total expenditures 2, 550, 060 1, 411,14 652, 007 1, 336, 042

REVENUES OVER ( UNDER)
EXPENDITURES 3, 449, 940 8, 612, 723 9, 460, 763 848, 040 OTHER FINANCING SOURCES ( USES):

Transfers out ( 2, 972, 480) ( 9, 023, 860) ( 8,59,61) 163, 999 Total other financing sources ( uses) ( 2, 972, 480) ( 9, 023, 860) ( 8,59,61) 163, 999 Net change in fund balances $ 477,60 $ ( 411, 137) 600, 92 $ 1, 012,39 FUND BALANCES:

Beginning of year
End of year
5, 457, 147
6, 058,49
111
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Streets and Roads
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Use of money and property $ - $ - $ 118, 890 $ 118, 890 Total revenues - - 118, 890 118, 890
EXPENDITURES:

Current:

Capital outlay 1,84, 000 22, 315,72 8, 624, 837 13, 690, 535 Total expenditures 1,84, 000 22, 315,72 8, 624, 837 13, 690, 535

REVENUES OVER ( UNDER)
EXPENDITURES ( 1,84, 000) ( 22, 315,72) ( 8, 505, 947) 13, 809, 425 OTHER FINANCING SOURCES ( USES):

Transfers in 1,84, 000 14, 374, 883 8, 761, 455 ( 5, 613, 428) Total other financing sources ( uses) 1,84, 000 14, 374, 883 8, 761, 455 ( 5, 613, 428) Net change in fund balances $ - $ ( 7, 940, 489) 255, 508 $ 8, 195, 997 FUND BALANCES:

Beginning of year 11, 033, 280
End of year $ 11, 288, 788
112
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual General CIP Projects
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Use of money and property $ $ - $ 118, 499 $ 118, 499
Total revenues - - 118, 499 118, 499
EXPENDITURES:

Current:

Public works
Capital outlay
Total expenditures
28, 042 ( 28, 042)
1, 392, 407 28,79, 184 11, 081, 476 17,97, 708
1, 392, 407 28,79, 184 11,09, 518 17,69, 666

REVENUES OVER ( UNDER)
EXPENDITURES ( 1, 392, 407) ( 28,79, 184) ( 10, 991, 019) 17, 288, 165 OTHER FINANCING SOURCES ( USES):

Transfers in 1, 392, 407 21, 100, 247 20, 469, 099 ( 631, 148) Total other financing sources ( uses) 1, 392, 407 21, 100, 247 20, 469, 099 ( 631, 148) Net change in fund balances $ - $ ( 7, 178, 937) 9, 478, 080 $ 16, 657, 017 FUND BALANCES:

Beginning of year 9, 006,76
End of year $ 18, 484, 156
113
City of Lathrop
Non -Major Governmental Funds
Year Ended June 30, 2023

SPECIAL REVENUE FUNDS
These funds account for the proceeds derived from specific revenue sources that are legally restricted to expenditures for specified purposes.

DEVELOPER PROJECTS SPECIAL REVENUE FUND
This fund accounts for revenues received and expenditures spent associated with various developer projects

DEVELOPMENT ENGINEERING SPECIAL REVENUE FUND
This fund accounts for the development engineering fee revenue and activity.

DEVELOPER DEPOSITS SPECIAL REVENUE FUND
This fund accounts for the activity relating to developer deposits for development projects ongoing within the City.

LANDSCAPE MAINTENANCE FUND
To account for revenues received and expenditures spent associated with specific park maintenance and operations of the Woodfield Landscape, Stonebridge Landscape and Mossdale Landscape Districts.

GAS TAX FUND
To account for revenues and expenditures apportioned to the City under the Streets and Highway Code, Sections 2105, 2106, 2107, and 2107. 5 of the State of California. Expenditures for administration, maintenance, and construction must be street related.

TRAFFIC SAFETY FUND
To account for the fines and forfeitures received under Section 1463 of the Penal Code. These funds are restricted for the use of official traffic control devices and for some street construction purposes.

LOCAL STREET FUND
To account for revenues and expenditures for the City' s street division.

PUBLIC NUISANCE FUND
To account for revenues and expenditures for code enforcement activities.

MEASURE K FUND
To account for revenues generated from a 2 -cent sales tax for local street repairs. These funds are restricted for maintenance and construction on street -related projects.

TRANSIT LTF FUND
To account for local transportation funds received for transit purposes from the San Joaquin County Council of Governments.

STREETS AND ROADS FUND
To account for local transportation funds received for street and road purposes from the San Joaquin County Council of Governments.

FEDERAL GRANT FUND
To account for federal grant expenditures and activity.

HISTORIC LATHROP LOAN PROGRAM ( HLLP) FUND
To account for building permit loans granted to Historic Lathrop residences.

STORM DRAIN FUND
To account for revenues and expenditures related to the maintenance and operations of storm drains and improvements within the created district.

STREET LIGHT FUND
To account for revenues and expenditures associated with the maintenance and operations of the street lighting within the area known as City Zone 2, which is in the City Wide Landscaping and Lighting Assessment District.

AB939 RECYCLING FUND
To account for the financial resources associated with the preparation, implementation, and administration of the City' s Integrated Solid Waste Management Plan in accordance with AB939.

COMMUNITY DEVELOPMENT BLOCK GRANT ( CDBG) FUND
To account for the annual federal grant that provides for development of viable urban communities.

SCHOLARSHIP FUND
To account for the revenues provided by businesses/ organizations to provide assistance with tuition of qualified parks and recreation participants.

COPS FUND
To account for local law enforcement grants funded by the office of Community Oriented Policing Services (COPS).

RTIF SAN JOAQUIN COUNTY FUND
To account for San Joaquin County' s10% share of Regional Traffic Impact Fees collected from builders.

RTIF LATHROP LOCAL WEST FUND
To account for the City' s
75% share of Regional Traffic Impact Fees collected from builders on the West side.

RTIF SJCOG FUND
To account for San Joaquin Council of Government' s15% share of Regional Traffic Impact Fees collected from builders.

RTIF LATHROP LOCAL EAST FUND
To account for the City' s
75% share of Regional Traffic Impact Fees collected from builders on the East side

LATHROP MANTECA FIRE DISTRICT MEASURE C FUND
To account for revenues and expenditures associated with the sales tax collections specific from Measure C.

STATE GRANTS FUND
To account for revenues and expenditures associated with state grants.

NORTH LATHROP TRANSPORTATION CFF FUND
To account for capital facility fees collected for North Lathrop area.

CITYWIDE ECONOMIC DEVELOPMENT 20% CFF FUND
To account for capital facility fees, collected to support development both on and off the Stewart Tract, that will provide to the City and its citizens.

RIVER ISLANDS CFD 2013- 1 FUND
To account for revenue and expenditures related to the maintenance of the River Island community.

LATHROP LAND ACQUISITIONS FUND
To account for revenues and expenditures associated with the CLSP Community Facilities District 2006- 1.

URBAN LEVEL OF FLOOD PROTECTION RECLAMATION DISTRICT (ULOP RD -17) LEVEE IMPACT FUND To account for capital facility fees collected for the Urban Level of Flood Protection plan in the Reclamation District RD) 17.

DEPARTMENT OF WATER RESOURCES (DWR) GRANT - URBAN LEVEL OF FLOOD PROTECTION ( ULOP)

PROJECT FUND
To account for revenues and expenditures associated with the Urban Level of Flood Protection plan.

CLSP OFF - SITE ROADWAY IMPROVEMENTS FUND
To account for improvements in the Central Lathrop Development.

SOUTH LATHROP CFD 2019- 1 FUND
To account for revenue and expenditures related to the maintenance of South Lathrop.

CENTRAL LATHROP CFD 2019- FUND
To account for revenue and expenditures related to the maintenance of Central Lathrop.

STEWART ECONOMIC DEVELOPMENT 80% CFF FUND
To account for capital facility fees, collected to support development both on and off the Stewart Tract, that will provide to the City and its citizens.

TOT TRUST FUND
To account for 1% of the 9% TOT from the City as a whole, to help finance regional infrastructure.

GATEWAY BUSINESS PARK
To account for the maintenance costs for the Lathrop Gateway Business Park and resulting Community Facilities District

CAPITAL PROJECTS FUNDS
Capital Projects Funds are utilized to account for resources used for the acquisition and construction of capital facilities by the City, with the exception of those assets financed by proprietary funds.

STORM DRAIN FUND
To account for expenditures for storm drain capital projects.

PARK IN -LIEU FUND
To account for revenues and expenditures which can legally be made under the Quimby Act. The revenue is collected from residential developers to offset the impact on parks and can only be used for new park development.

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117
City of Lathrop
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2023
Special Revenue Funds
Developer Landscape
Developer Projects Engineering Developer Deposits Maintenance ASSETS
Cash and investments $ 2, 878, 372 $ 12, 550, 995 $ 851, 437 $ 1, 617, 884 Receivables:

Accounts ( net of allowance for uncollectibles) 29,07 1, 077, 266 133 Notes and loans - - -
Accrued interest 8, 982 27,19 2, 748 3,20
Total assets

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable
Unearned revenue
Deposits payable
Due to other funds
Total liabilities
Fund Balances:

Restricted
Unassigned
2, 916, 561 $ 12, 578, 214 $ 1, 931, 451 $ 1, 621, 337
281 $ 37, 667 $ 403, 919 $
1, 781, 974 -
2, 453, 634 1, 800 1, 932, 353
111, 533
2, 453, 915 1, 821, 441 2, 336, 272 111, 533
462, 646 10, 756,73 - 1, 509, 804
404, 821)
Total fund balances 462, 646 10, 756,73 ( 404, 821) 1, 509, 804 Total liabilities, deferred inflows of
resources and fund balances $ 2, 916, 561 $ 12, 578, 214 $ 1, 931, 451 $ 1, 621, 337 118
Special Revenue Funds
Gas Tax Traffic Safety Local Street Public Nuisance Measure K Transit LTF 1,95, 351 $ 124, 367 $ 920, 283 $ 10, 419 $ 406, 645 $ 203, 662 132,17 2, 127 16, 833 2, 019 259,57 470, 519
2, 194 265 2, 718 22 935 436
1, 329, 662 $ 126, 759 $ 939, 834 $ 12, 460 $ 666, 837 $ 674,17 113,03 $
113,03 - -
1, 329, 662 126, 759 826, 731 12, 460 666, 837 674,17
1, 329, 662 126, 759 826, 731 12, 460 666, 837 674,17
1, 329, 662 $ 126, 759 $ 939, 834 $ 12, 460 $ 666, 837 $ 674,17 119
City of Lathrop
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2023
Special Revenue Funds
Streets and Roads Federal Grant
Historic Lathrop
Loan Program
HLLP) Storm Drain
ASSETS
Cash and investments $ 243,90 $ 53 $ 234, 739 $ 367, 430 Receivables:

Accounts ( net of allowance for uncollectibles) 523,58 - - - Notes and loans - 20, 350
Accrued interest 680 503 741
Total assets $ 767, 528 $ 53 $ 255, 592 $ 368, 171

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable
Unearned revenue
Deposits payable
Due to other funds
30, 860
Total liabilities - - 30, 860
Fund Balances:

Restricted 767, 528 53 255, 592 337,11
Unassigned
Total fund balances 767, 528 53 255, 592 337,11
Total liabilities, deferred inflows of
resources and fund balances $ 767, 528 $ 53 $ 255, 592 $ 368, 171 120
Special Revenue Funds
Community
Development Block
Street Light AB939 Recycling Grant Scholarship Fund COPS RTIF San Joaquin
County
1, 450, 678 $ 1, 369, 936 $ 2,04 $ 22, 361 $
34,90 70, 913 1, 770
3, 065 2, 857 5 52
333, 91 $ 150, 920
587 176
1, 453, 743 $ 1, 407, 183 $ 73, 122 $ 24, 183 $ 334, 518 $ 151, 096 45, 988 $ 20, 452 $ 151, 830
45, 988 20, 452 151, 830
1, 407, 755 1, 386, 731 73, 122 24, 183 334, 518
734)
1, 407, 755 1, 386, 731 73, 122 24, 183 334, 518 ( 734) 1, 453, 743 $ 1, 407, 183 $ 73, 122 $ 24, 183 $ 334, 518 $ 151, 096 121
City of Lathrop
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2023
Special Revenue Funds
RTIF Lathrop Local RTIF Lathrop Local
West RTIF SJCOG East LMFD Measure C
ASSETS
Cash and investments $ 13,70, 852 $ 226, 381 $ 2, 676, 028 $ 1, 020,70 Receivables:

Accounts ( net of allowance for uncollectibles) - -
Notes and loans - - -
Accrued interest 27, 139 264 5, 713 200
Total assets

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
13,97, 991 $ 226, 645 $ 2, 681, 741 $ 1, 020, 270
Liabilities:

Accounts payable $ 913, 616 $ 227, 746 $ - $ 156
Unearned revenue - - -
Deposits payable - - - -
Due to other funds - - -
Total liabilities 913, 616 227, 746 - 156
Fund Balances:

Restricted 12, 284, 375 2, 681, 741 1, 020, 114
Unassigned - ( 1, 101) -
Total fund balances 12, 284, 375 ( 1, 101) 2, 681, 741 1, 020, 114 Total liabilities, deferred inflows of
resources and fund balances $ 13,97, 991 $ 226, 645 $ 2, 681, 741 $ 1, 020, 270 122
Special Revenue Funds
State Grants
North Lathrop Citywide Economic River Islands CFD Lathrop Land ULOP RD -17 Levee Transportation Dev Fee 20% 2013- 1
Acquisitions Impact
11, 562 $ 3, 290,03 $ 117,20 $ 14, 098 $ 528, 869
82,39 - - -
25 6, 904 2,04 - 709
82,39 $ 11, 587 $ 3, 297, 107 $ 119, 324 $ 14, 098 $ 529,78 14) $ 532,30
12, 855
14, 604 - -
14, 604 - - 12, 841 532,30
68, 235 11, 587 3, 297, 107 119, 324 1, 257
2, 952)
68, 235 11, 587 3, 297, 107 119, 324 1, 257 ( 2, 952)
82,39 $ 11, 587 $ 3, 297, 107 $ 119, 324 $ 14, 098 $ 529,78 123
City of Lathrop
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2023
Special Revenue Funds
CLSP Off -Site
DWR Grant - ULOP Roadway South Lathrop CFD Central Lathrop Project Improvement 2019- 1 CFD 2019-
ASSETS
Cash and investments
Receivables:

Accounts ( net of allowance for uncollectibles)
Notes and loans
Accrued interest
3 $ 165, 295 $
330
1, 304, 518 $ 304, 135
2, 895 637
Total assets $ 3 $ 165, 625 $ 1, 307, 413 $ 304, 772

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable
Unearned revenue
Deposits payable
Due to other funds
Total liabilities
1, 770 $ 5, 110 $ 14, 600
1, 770 5, 110 14, 600
Fund Balances:

Restricted 3 163, 855 1, 302,03 290, 172
Unassigned -
Total fund balances 3 163, 855 1, 302,03 290, 172
Total liabilities, deferred inflows of
resources and fund balances $ 3 $ 165, 625 $ 1, 307, 413 $ 304, 772 124
Special Revenue Funds Capital Project Funds
Stewart Economic Gateway Business
Dev Fee 80% TOT Trust Park Storm Drain Park in Lieu
Total Nonmajor
Govemmental
Funds
200, 017 $ 1, 292, 501 $ 187, 225 $ 900,58 $ 1, 759, 124 $ 52, 103, 916 376 2, 768 367 1, 929
2, 702, 948
20, 350
3,88 113, 353
200, 393 $ 1, 295,69 $ 187, 592 $ 902, 887 $ 1, 762, 512 $ 54, 940, 567 264 $ - $ 28, 420 $ 2, 639, 831
1, 781, 974
192, 000 - - - 4, 592, 642
14, 604
192, 000 - 264 28, 420 9, 029,51
8, 393 1, 295,69 187, 328 902, 887 1, 734, 092 46, 321, 124 409, 608)
8, 393 1, 295,69 187, 328 902, 887 1, 734, 092 45, 911, 516 200, 393 $ 1, 295,69 $ 187, 592 $ 902, 887 $ 1, 762, 512 $ 54, 940, 567 125
City of Lathrop
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
For the year ended June 30, 2023
Special Revenue Funds
Developer Landscape
Developer Projects Engineering Developer Deposits Maintenance REVENUES:

Taxes and assessments $ - $ - $ - $ 3, 116, 583
Licenses and permits - -
Intergovernmental - -
Charges for services 4, 369, 077 -
Use of money and property 36, 103 156, 774 19, 324 26, 307 Fines and forfeitures - -
Developer participation 1, 628, 711 - 388, 51
Miscellaneous 24, 724 - 4, 994
Total revenues 1, 664, 814 4, 550,75 407, 905 3, 147, 884 EXPENDITURES:

Current:

Public safety - -
Community development 54 -
Culture and leisure - -
Public works 1, 697, 452 91,28
Capital outlay 173, 422 28, 671
Debt service:

Interest and fiscal charges - 159, 854
1, 344, 030
11 Total expenditures 1, 870, 928 280, 453 1, 344, 041

REVENUES OVER ( UNDER)

EXPENDITURES
OTHER FINANCING SOURCES ( USES):
1, 664, 814 2, 679,47 127, 452 1, 803,43
Transfers in - - - 75, 060
Transfers out ( 1, 642, 779) - - ( 1, 462, 145)
Total other financing sources ( uses) ( 1, 642, 779) - ( 1, 387, 085) Net change in fund balances 22, 035 2, 679,47 127, 452 416, 758 FUND BALANCES:

Beginning of year 440, 611 8, 077, 126 ( 532, 273) 1, 093,46 Restatement - -
Beginning of year, as restated 440, 611 8, 077, 126 ( 532, 273) 1, 093,46 End of year $ 462, 646 $ 10, 756,73 $ ( 404, 821) $ 1, 509, 804 126
Special Revenue Funds
Gas Tax Traffic Safety Local Street Public Nuisance Measure K Transit LTF 1, 482, 522 -
12, 506 1, 557 7, 205
19, 409 -
135
54, 361 -
809, 114 470, 519
9, 200 2, 521
1, 495, 028 20, 966 61, 566 135 818, 314 473, 040
3, 936 -
1, 225, 563 -
3, 936 1, 225, 563 -
1, 495, 028 17, 030 ( 1,63, 997) 135 818, 314 473, 040
1, 548, 076
715, 440) ( 2, 750) ( 339, 480) 783, 110)
715, 440) ( 2, 750) 1, 208, 596 783, 110)
779, 588 14, 280 44, 599
550, 074 112, 479 782, 132
550, 074 112, 479 782, 132
135 35, 204 473, 040
12, 325 631,33 201, 577
12, 325 631,33 201, 577
1, 329, 662 $ 126, 759 $ 826, 731 $ 12, 460 $ 666, 837 $ 674,17 127
City of Lathrop
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
For the year ended June 30, 2023
Special Revenue Funds
REVENUES:

Taxes and assessments
Licenses and permits
Intergovernmental
Charges for services
Use of money and property
Fines and forfeitures
Developer participation
Miscellaneous
Total revenues
EXPENDITURES:

Current:

Public safety
Community development
Culture and leisure
Public works - - 442, 101
Streets and Roads Federal Grant
Historic Lathrop
Loan Program
HLLP) Storm Drain
523,58 897, 516 -
13,93 53 3, 055 3, 474
352, 416
536, 751 897, 569 3, 055 355, 890
Capital outlay
Debt service:

Interest and fiscal charges
Total expenditures - 442, 101

REVENUES OVER ( UNDER)
EXPENDITURES 536, 751 897, 569 3, 055 ( 86, 211)
OTHER FINANCING SOURCES ( USES):

Transfers in - 157, 969
Transfers out ( 1, 095, 866) ( 958, 447) - ( 66, 460)
Total other financing sources ( uses) ( 1, 095, 866) ( 958, 447) 91, 509 Net change in fund balances ( 559, 115) ( 60, 878) 3, 055 5, 298 FUND BALANCES:

Beginning of year 1, 326, 643 60, 931 252, 537 332, 013 Restatement - - -
Beginning of year, as restated 1, 326, 643 60, 931 252, 537 332, 013 End of year $ 767, 528 $ 53 $ 255, 592 $ 337,11
128
Special Revenue Funds
Community
Development Block
Street Light AB939 Recycling Grant Scholarship Fund COPS RTIF San Joaquin
County
312, 751 $
37, 590
38,97
17, 326 15, 966
1,50, 006
5, 000
75, 913
30 2, 877
285
2, 155
152, 771
4, 779
220,98
948
1,72, 332 404, 704 75, 943 5, 317 157, 550 221,46
161, 725
121, 258
977, 600
20, 427
221, 980
1,39, 325 121, 258 20, 427 221, 980
33, 007 283, 446 75, 943 5, 317 137,23 ( 734)
32, 806 -
220, 850) ( 28, 150) 2, 877) ( 100, 00)
188, 044) ( 28, 150) 2, 877) ( 100, 000)
155, 037) 255,96
1, 562, 792 1,31, 435
1, 562, 792 1,31, 435
75, 943 2, 440 37, 123
2, 821) 21, 743 297, 395
2, 821) 21, 743 297, 395
734)
1, 407, 755 $ 1, 386, 731 $ 73, 122 $ 24, 183 $ 334, 518 $ 734) 129
City of Lathrop
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
For the year ended June 30, 2023
Special Revenue Funds
RTIF Lathrop Local RTIF Lathrop Local
West RTIF SJCOG East LMFD Measure C
REVENUES:

Taxes and assessments $ 1, 588, 378 $ 330, 448 $
Licenses and permits -
Intergovernmental
Charges for services
Use of money and property 155, 606 1, 423
Fines and forfeitures -
Developer participation
Miscellaneous
Total revenues
EXPENDITURES:

Current:

Public safety
Community development
Culture and leisure - -
Public works 889, 719 332, 972
Capital outlay - -
Debt service:

Interest and fiscal charges
30, 805 $
34, 589 3,17
1, 743, 984 331, 871 65, 394 3,17
Total expenditures

REVENUES OVER (UNDER)

EXPENDITURES
OTHER FINANCING SOURCES ( USES):

Transfers in
Transfers out
4, 168, 007
1, 661
889, 719 332, 972 1, 661 4, 168, 007
854, 265 ( 1, 101) 63, 733 ( 4, 164, 690)
4, 009, 654
Total other financing sources ( uses) - - 4, 009, 654
Net change in fund balances
FUND BALANCES:

Beginning of year
Restatement
Beginning of year, as restated
End of year
854, 265 ( 1, 101) 63, 733 ( 155, 036)
11, 430, 110 - 2, 618, 008 1,75,50
11, 430, 110 2, 618, 008 1,75,50
12, 284, 375 $ 1, 101) $ 2, 681, 741 $ 1, 020, 114
130
Special Revenue Funds
State Grants
North Lathrop Citywide Economic River Islands CFD Lathrop Land ULOP RD -17 Levee Transportation Dev Fee 20% 2013- 1
Acquisitions Impact
269,34
75 619, 000 $ 1,04,64 $
150 30, 400 4, 214 183
913, 227
2, 953)
269, 309 150 649, 400 1,08, 378 183 910, 274
26, 317 - 913, 226
26, 317 913, 226
269, 309 150 649, 400 1, 082,61 183 ( 2, 952)
565, 000
201, 074) - ( 1, 083,26) -
201, 074) 565, 000 ( 1, 083,26) - -
68, 235 150 1, 214, 400 ( 965) 183 ( 2, 952)
11, 437 2, 082, 707 120, 289 1, 074
11, 437 2, 082, 707 120, 289 1, 074
68, 235 $ 11, 587 $ 3, 297, 107 $ 119, 324 $ 1, 257 $ ( 2, 952) 131
City of Lathrop
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
For the year ended June 30, 2023
Special Revenue Funds
CLSP Off -Site
DWR Grant - ULOP Roadway South Lathrop CFD Central Lathrop Project Improvement 2019- 1 CFD 2019-
REVENUES:

Taxes and assessments
Licenses and permits
Intergovernmental
Charges for services
Use of money and property
Fines and forfeitures
Developer participation
Miscellaneous
Total revenues
EXPENDITURES:

Current:

Public safety
Community development
Culture and leisure
Public works
Capital outlay
Debt service:

Interest and fiscal charges
4, 052, 308
37, 697 $
1, 705
553, 273 $ 1, 062, 449
14, 716 2, 052
4, 620
4, 052, 308 39, 402 567, 989 1, 069, 121
4, 052, 308 236, 924 851, 999
Total expenditures 4, 052, 308 - 236, 924 851, 999

REVENUES OVER ( UNDER)
EXPENDITURES 39, 402 331, 065 217, 122
OTHER FINANCING SOURCES ( USES):

Transfers in
Transfers out - ( 178, 050) ( 157, 560)
Total other financing sources ( uses) - - ( 178, 050) ( 157, 560) Net change in fund balances 39, 402 153, 015 59,62
FUND BALANCES:

Beginning of year
Restatement
Beginning of year, as restated
End of year
518, 435) 124, 453 1,49, 288 230, 610
518, 438 - -
3 124, 453 1,49, 288 230, 610
3 $ 163, 855 $ 1, 302,03 $ 290, 172
132
Special Revenue Funds Capital Project Funds
Stewart Economic
Dev Fee 80% TOT Trust
Gateway Business
Park Storm Drain Park in Lieu
Total Nonmajor
Governmental
Funds
2, 120
51, 420 $
16, 638
151, 744 $
1, 018
570, 038 $ 10, 662, 275
37, 590
8, 774,29
4, 369, 077
12,69 15, 887 624, 050
1, 521, 831
2, 017, 292
95, 854
2, 120 68, 058 152, 762 12,69 585, 925 28, 102, 698
17, 273
4, 354, 095
54 1, 346, 821
12, 097, 490
202, 104
159, 854
17, 273 18,60, 418
2, 120 68, 058 135, 489 12,69 585, 925 9,42, 280
250, 00 - 6,38, 565
450) ( 9, 038, 514)
249, 550 ( 2, 399, 949)
2, 120 68, 058
6, 273 1, 227,11
6, 273 1, 227,11
135, 489 261, 79 585, 925 7, 542, 331
51, 839 641, 168 1,48,67 37, 850, 747
518, 438
51, 839 641, 168 1,48,67 38,69, 185
8, 393 $ 1, 295,69 $ 187, 328 $ 902, 887 $ 1, 734, 092 $ 45, 911, 516 133
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Developer Projects
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Use of money and property $
Developer participation
Total revenues
OTHER FINANCING SOURCES ( USES):

Transfers out
Total other financing sources ( uses)
Net change in fund balances
FUND BALANCES:

Beginning of year
End of year
200, 00
36, 103 $
2, 401, 555 1, 628, 711
36, 103
772, 844)
200, 00 2, 401, 555 1, 664, 814 ( 736,41)
201, 640) 2, 335, 600) 1, 642, 779) 692, 81
201, 640) 2, 335, 600) 1, 642, 779) 692, 81
1, 640) $ 65, 955 22, 035 $ ( 43, 920)
440, 611
462, 646
134
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Developer Engineering
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Charges for services $ 1, 344,94 $ 1, 517, 685 $ 4, 369, 077 $ 2, 851, 392 Use of money and property - 156, 774 156, 774
Miscellaneous - 24, 724 24, 724
Total revenues
EXPENDITURES:
1, 344,94 1, 517, 685 4, 550,75 3, 032, 890
Current:

Community development 3, 000 400 54 346
Public works 2, 501, 360 3, 623, 346 1, 697, 452 1, 925, 894 Total expenditures

REVENUES OVER ( UNDER)

EXPENDITURES
2, 504, 360 3, 799, 177 1, 870, 928 1, 928, 249
1,59, 966) ( 2,81, 492) 2, 679,47 4, 961, 139
Net change in fund balances $ ( 1,59, 966) $ ( 2,81, 492) 2, 679,47 $ 4, 961, 139 FUND BALANCES:

Beginning of year 8, 077, 126
End of year $ 10, 756,73
135
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Developer Deposits
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Use of money and property $ 33, 500 $ 33, 500 $ 19, 324 $ Developer participation 862,6 862,6 388, 51
Total revenues
EXPENDITURES:
14, 176)
474, 25)
896, 326 896, 326 407, 905 ( 488,21)
Current:

Public works 592, 000 650,44 91,28
Debt service: -
Interest and fiscal charges 160, 00 160, 00 159, 854
558, 716
146
Total expenditures 896, 326 954,70 280, 453

REVENUES OVER ( UNDER)
674, 371
EXPENDITURES - ( 58, 644) 127, 452 186, 096
Net change in fund balances $ $ ( 58, 644) 127, 452 $
FUND BALANCES:

Beginning of year ( 532, 273)
End of year $ ( 404, 821)
186, 096
136
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Landscape Maintenance
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Taxes and assessments $ 2, 863, 303 $ 2, 863, 303 $ 3, 116, 583 $ 253,80 Use of money and property 3, 000 3, 000 26, 307 23, 307 Miscellaneous - 4, 994 4, 994
Total revenues
EXPENDITURES:
2, 866, 303 2, 866, 303 3, 147, 884 281, 581
Current:

Public works 2, 572, 964 1, 751,23 1, 344, 030 407, 693 Capital outlay - 12 11 1
Total expenditures

REVENUES OVER ( UNDER)

EXPENDITURES
OTHER FINANCING SOURCES ( USES):
2, 572, 964 1, 751, 735 1, 344, 041 407, 694
293, 39 1,14, 568 1, 803,43 689, 275
Transfers in 72, 660 75, 060 75, 060
Transfers out ( 335, 440) ( 1, 462, 175) ( 1, 462, 145) 30 Total other financing sources ( uses) ( 262, 780) ( 1, 387, 115) ( 1, 387, 085) 30 Net change in fund balances $ 30, 559 $ ( 272, 547) 416, 758 $ 689, 305 FUND BALANCES:

Beginning of year 1, 093,46
End of year $ 1, 509, 804
137
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Gas Tax
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Intergovernmental
Use of money and property
1,26, 708 $ 1,26, 708 $ 1, 482, 522 $ 355, 814
12, 506 12, 506
Total revenues 1,26, 708 1,26, 708 1, 495, 028 368,20
OTHER FINANCING SOURCES ( USES):

Transfers out ( 515, 20) ( 715, 440) ( 715, 440) -
Total other financing sources ( uses) ( 515, 20) ( 715, 440) ( 715, 440) Net change in fund balances $ 611, 458 $ 411, 268 779, 588 $ 368,20 FUND BALANCES:

Beginning of year 550, 074
End of year $ 1, 329, 662
138
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Traffic Safety
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Use of money and property $ - $ - $ 1, 557 $ 1, 557
Fines and forfeitures 30, 000 30, 000 19, 409 ( 10, 591) Total revenues 30, 000 30, 000 20, 966 ( 9, 034)
EXPENDITURES:

Current:

Public safety 46, 500 46, 500 3, 936 42, 564
Total expenditures 46, 500 46, 500 3, 936 42, 564

REVENUES OVER ( UNDER)
EXPENDITURES ( 16, 500) ( 16, 500) 17, 030 33, 530
OTHER FINANCING SOURCES ( USES):

Transfers out ( 2, 440) ( 2, 750) ( 2, 750) -
Total other financing sources ( uses) ( 2, 440) ( 2, 750) ( 2, 750) Net change in fund balances $ ( 18, 940) $ ( 19, 250) 14, 280 $ 33, 530 FUND BALANCES:

Beginning of year 112, 479
End of year $ 126, 759
139
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Local Street
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Use of money and property $ - S $ 7, 205 $
Miscellaneous - 54, 361
Total revenues
EXPENDITURES:
7, 205
54, 361
61, 566 61, 566
Current:

Culture and leisure - 1, 834, 420 1, 225, 563 608, 857
Public works 1, 228, 854 - -
Capital outlay 10, 000 15, 200 15, 200
Total expenditures 1, 238, 854 1, 849, 620 1, 225, 563 624, 057

REVENUES OVER ( UNDER)

EXPENDITURES
OTHER FINANCING SOURCES ( USES):
1, 238, 854) ( 1, 849, 620) ( 1,63, 997) 685,23
Transfers in 1, 408, 074 1, 548, 074 1, 548, 076 2
Transfers out ( 169, 220) ( 339, 480) ( 339, 480)
Total other financing sources ( uses) 1, 238, 854 1, 208, 594 1, 208, 596 2 Net change in fund balances $ - $ ( 641, 026) 44, 599 $ 685,25 FUND BALANCES:

Beginning of year 782, 132
End of year $ 826, 731
140
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Public Nuisance
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Use of money and property $ - $ - $ 135 $ 135
Total revenues - 135 135
EXPENDITURES:

Current:

Public works 4, 000 4, 000 - 4, 000
Total expenditures 4, 000 4, 000 - 4, 000

REVENUES OVER ( UNDER)
EXPENDITURES ( 4, 000) 4, 000) 135 4, 135
Net change in fund balances $ ( 4, 000) $
FUND BALANCES:

Beginning of year
4, 000) 135 $
12, 325
End of year $ 12, 460
4, 135
141
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Measure K
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Intergovernmental $ 580, 00 $ 663, 384 $ 809, 114 $ 145, 730 Use of money and property - 9, 200 9, 200
Total revenues 580, 00 663, 384 818, 314 154, 930
OTHER FINANCING SOURCES ( USES):

Transfers out ( 700, 00) ( 812, 066) ( 783, 110) 28, 956 Total other financing sources ( uses) ( 700, 00) ( 812, 066) ( 783, 110) 28, 956 Net change in fund balances $ ( 120, 00) $ ( 148, 62) 35, 204 $ 183, 886 FUND BALANCES:

Beginning of year 631,33
End of year $ 666, 837
142
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Transit LTF
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Intergovernmental $ - $ 633, 527 $ 470, 519 $ ( 163, 008) Use of money and property - 2, 521 2, 521
Total revenues - 633, 527 473, 040 ( 160, 487)
OTHER FINANCING SOURCES ( USES):

Transfers out - ( 300, 00) 300, 00
Total other financing sources ( uses) - ( 300, 00) - 300, 00 Net change in fund balances $ - $ 333, 527 473, 040 $ 139, 513 FUND BALANCES:

Beginning of year 201, 577
End of year $ 674,17
143
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Streets and Roads
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Intergovernmental $ 598, 901 $ 926, 459 $ 523,58 $ ( 402, 901) Use of money and property - 13,93 13,93
Total revenues 598, 901 926, 459 536, 751 ( 389, 708)
OTHER FINANCING SOURCES ( USES):

Transfers out ( 69, 000) ( 1, 785, 260) ( 1, 095, 866) 689, 34 Total other financing sources ( uses) ( 69, 000) ( 1, 785, 260) ( 1, 095, 866) 689, 34 Net change in fund balances $ 529, 901 $ ( 858,01) ( 559, 115) $ 299, 686 FUND BALANCES:

Beginning of year 1, 326, 643
End of year $ 767, 528
144
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Federal Grant
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Intergovernmental $ $ 3, 855, 347 $ 897, 516 $ ( 2, 957, 831) Use of money and property - - 53 53
Total revenues - 3, 855, 347 897, 569 ( 2, 957, 778)
OTHER FINANCING SOURCES ( USES):

Transfers out
Total other financing sources ( uses) - ( 4, 231, 831) ( 958, 447) 3, 273, 384 Net change in fund balances $ - $ ( 376, 484) ( 60, 878) $ 315, 606 FUND BALANCES:

Beginning of year 60, 931
End of year
4, 231, 831) ( 958, 447) 3, 273, 384
53 145
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Historic Lathrop Loan Program ( HLLP)
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Use of money and property $ - $ - $ 3, 055 $ 3, 055
Total revenues - 3, 055 3, 055
Net change in fund balances $ $ - 3, 055 $ 3, 055
FUND BALANCES:

Beginning of year 252, 537
End of year
255, 592
146
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Storm Drain
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Use of money and property $ - $ - $ 3, 474 $
Fines and forfeitures 352, 506 352, 506 352, 416
Total revenues
3, 474
90)
352, 506 352, 506 355, 890 3,84
EXPENDITURES:

Current:

Public works 429, 222 608, 151 442, 101 166, 050
Total expenditures 429, 222 608, 151 442, 101 166, 050

REVENUES OVER ( UNDER)
EXPENDITURES ( 76,16) ( 255, 645) ( 86, 211) 169, 434
OTHER FINANCING SOURCES ( USES):

Transfers in 156, 000 157, 968 157, 969 1
Transfers out ( 67, 090) ( 66, 460) ( 66, 460)
Total other financing sources ( uses) 88, 910 91, 508 91, 509 1 Net change in fund balances $ 12,94 $ ( 164,37) 5, 298 $ 169, 435 FUND BALANCES:

Beginning of year 332, 013
End of year $ 337,11
147
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Street Light
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Use of money and property
Fines and forfeitures
Miscellaneous
Total revenues
EXPENDITURES:

Current:

Public safety
Public works
Total expenditures

REVENUES OVER ( UNDER)

EXPENDITURES
OTHER FINANCING SOURCES (USES):
17, 326 $ 17, 326
1,48, 080 1,48, 080 1,50, 006 1, 926
5, 000 5, 000
1,48, 080 1,48, 080 1,72, 332 24,52
173, 274 294, 810 161, 725 133, 085
971, 528 1, 242, 042 977, 600 264, 42
1,44, 802 1, 536, 852 1,39, 325 397, 527
3, 278 ( 388, 772) 33, 007 421, 779
Transfers in 32, 806 32, 806 32, 806
Transfers out ( 139, 50) ( 232, 100) ( 220, 850) 11, 250 Total other financing sources ( uses) ( 106, 784) ( 199, 24) ( 188, 044) 11, 250 Net change in fund balances $ ( 103, 506) $ ( 588, 066) ( 155, 037) $ 433, 029 FUND BALANCES:

Beginning of year 1, 562, 792
End of year $ 1, 407, 755
148
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual AB939 Recycling
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Taxes and assessments
Licenses and permits
Intergovernmental
Use of money and property
Total revenues
EXPENDITURES:

Current:

Culture and leisure
Public works
Total expenditures

REVENUES OVER (UNDER)

EXPENDITURES
OTHER FINANCING SOURCES ( USES):

Transfers out
Total other financing sources ( uses)
Net change in fund balances
FUND BALANCES:

Beginning of year
End of year
170, 00 $ 170, 00 $ 312, 751 $ 142, 751
37, 590 37, 590
5, 000 43, 397 38,97 ( 5, 000)
15, 966 15, 966
175, 000 213, 397 404, 704 191, 307
145, 703
86, 556
121, 258 24, 445
86, 556 145, 703 121, 258 24, 445
88, 444 67,94 283, 446 215, 72
14, 560) 28, 150) ( 28, 150)
14, 560) 28, 150) ( 28, 150)
73, 884 $ 39, 544 255,96 $ 215, 72
1,31, 435
1, 386, 731
149
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Community Development Block Grant
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Intergovernmental $ $ 161, 30 $ 75, 913 $ ( 85, 397)
Use of money and property - 30 30
Total revenues - 161, 30 75, 943 ( 85, 367)
OTHER FINANCING SOURCES ( USES):

Transfers out - ( 161, 30) 161, 30
Total other financing sources (uses) - ( 161, 30) - 161, 30 Net change in fund balances $ - $ - 75, 943 $ 75, 943
FUND BALANCES:

Beginning of year ( 2, 821)
End of year $ 73, 122
150
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Scholarship Fund
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Intergovernmental
Use of money and property
Miscellaneous
Total revenues
OTHER FINANCING SOURCES ( USES):

Transfers out
Total other financing sources ( uses)
Net change in fund balances
FUND BALANCES:

Beginning of year
End of year
5, 000 $ 10, 000 $ 2, 877 $ ( 7, 123)
285 285
200 200 2, 155 1, 955
5, 200 10, 200 5, 317 ( 4, 883)
5, 000) ( 10, 000) ( 2, 877) 7, 123
5, 000) ( 10, 000) ( 2, 877) 7, 123
200 $ 200 2, 440 $ 2,40
21, 743
24, 183
151
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual COPS
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Intergovernmental
Use of money and property
Total revenues
EXPENDITURES:

Current:

Public safety
Total expenditures

REVENUES OVER ( UNDER)

EXPENDITURES
OTHER FINANCING SOURCES ( USES):

Transfers out
Total other financing sources ( uses)
Net change in fund balances
FUND BALANCES:

Beginning of year
End of year
500, 00 $ 500, 00 $ 152, 771 $ ( 347, 229)
4, 779 4, 779
500, 00 500, 00 157, 550 ( 342, 450)
500, 00 418, 841 20, 427 398, 414
500, 00 418, 841 20, 427 398, 414
81, 159 137,23 55, 964
100, 00) ( 100, 00)
100, 00) ( 100, 00)
18, 841) 37, 123 $
297, 395
334, 518
55, 964
152
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual RTIF San Joaquin County
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Taxes and assessments
Use of money and property
Total revenues
EXPENDITURES:
295, 778 $ 295, 778 $ 220,98 $ ( 75, 480)
948 948
295, 778 295, 778 221,46 ( 74, 532)
Current:

Public works 295, 778 295, 778 221, 980 73,98
Total expenditures 295, 778 295, 778 221, 980

REVENUES OVER (UNDER)
73,98
EXPENDITURES - ( 734) 734)
Net change in fund balances $ - $ ( 734) $ ( 734)
FUND BALANCES:

Beginning of year
End of year 734)
153
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual RTIF Lathrop Local West
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Taxes and assessments
Use of money and property
Total revenues
EXPENDITURES:
1, 708, 367 $ 1, 708, 367 $ 1, 588, 378 $ ( 119, 989)
155, 606 155, 606
1, 708, 367 1, 708, 367 1, 743, 984 35, 617
Current:

Public works 5, 000 888,26 889, 719 ( 893)
Total expenditures

REVENUES OVER ( UNDER)

EXPENDITURES
5, 000 888,26 889, 719 ( 893)
1, 703, 367 819, 541 854, 265 34, 724
Net change in fund balances $ 1, 703, 367 $ 819, 541 854, 265 $ 34, 724 FUND BALANCES:

Beginning of year 11, 430, 110
End of year $ 12, 284, 375
154
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual

RTIF SJCOG
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Taxes and assessments
Use of money and property
Total revenues
EXPENDITURES:
443, 667 $ 443, 667 $ 330, 448 $ ( 113, 219)
1, 423 1, 423
443, 667 443, 667 331, 871 ( 111, 796)
Current:

Public works 443, 667 443, 667 332, 972 110, 695
Total expenditures 443, 667 443, 667 332, 972

REVENUES OVER ( UNDER)
110, 695
EXPENDITURES - - ( 1,01)
Net change in fund balances $ $ ( 1,01) $
FUND BALANCES:

Beginning of year
End of year $ ( 1, 101)
155
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual RTIF Lathrop Local East
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Taxes and assessments $ 465, 600 $ 465, 600 $ 30, 805 $ ( 434, 795) Use of money and property - 34, 589 34, 589
Total revenues 465, 600 465, 600 65, 394 ( 400, 26)
EXPENDITURES:

Current:

Public works 5, 000 5, 000 1, 661 3,39
Total expenditures 5, 000 5, 000 1, 661 3,39

REVENUES OVER ( UNDER)
EXPENDITURES 460, 60 460, 60 63, 733 ( 396, 87)
Net change in fund balances $ 460, 60 $ 460, 60 63, 733 $ ( 396, 87) FUND BALANCES:

Beginning of year
2, 618, 008
End of year $ 2, 681, 741
156
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual LMFD Measure C
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Use of money and property $ - $ - $ 3,17 $ 3,17
Total revenues - 3,17 3,17
EXPENDITURES:

Current:

Public safety 2, 400, 000 4, 168, 010 4, 168, 007 3
Total expenditures 2, 400, 000 4, 168, 010 4, 168, 007 3

REVENUES OVER ( UNDER)
EXPENDITURES ( 2, 400, 00) ( 4, 168, 010) ( 4, 164, 690) 3,20 OTHER FINANCING SOURCES ( USES):

Transfers in 2, 400, 000 4, 168, 010 4, 009, 654 ( 158, 356) Total other financing sources ( uses) 2, 400, 000 4, 168, 010 4, 009, 654 ( 158, 356) Net change in fund balances $ - $ - ( 155, 036) $ ( 155, 036) FUND BALANCES:

Beginning of year
1,75,50
End of year $ 1, 020, 114
157
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual State Grants
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Intergovernmental $ 900, 00 $ 1, 247,18 $ 269,34 $ ( 977,84) Use of money and property - - 75 75
Total revenues 900, 00 1, 247,18 269, 309 ( 977,09)
OTHER FINANCING SOURCES (USES):

Transfers out ( 900, 00) ( 1, 247,18) ( 201, 074) 1, 046, 144 Total other financing sources ( uses) ( 900, 00) ( 1, 247,18) ( 201, 074) 1, 046, 144 Net change in fund balances $ - $ 68, 235 $ 68, 235
FUND BALANCES:

Beginning of year -
End of year $ 68, 235
158
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual North Lathrop Transportation
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Use of money and property $ - $ - $ 150 $ 150
Developer participation 468, 331 468, 331 - ( 468, 331) Total revenues 468, 331 468, 331 150 ( 468, 11)
Net change in fund balances $ 468, 331 $ 468, 331 150 $ ( 468, 11) FUND BALANCES:

Beginning of year
11, 437
End of year $
11, 587
159
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Citywide Economic Dev Fee 20%
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Taxes and assessments $ 205, 000 $ 205, 000 $ 619, 000 $ 414, 000 Use of money and property - - 30, 400 30, 400
Total revenues 205, 000 205, 000 649, 400 444,00
OTHER FINANCING SOURCES ( USES):

Transfers in - 565, 000 565, 000
Total other financing sources (uses) - 565, 000 565, 000 - Net change in fund balances $ 205, 000 $ 770, 00 1, 214, 400 $ 444,00 FUND BALANCES:

Beginning of year 2, 082, 707
End of year $ 3, 297, 107
160
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual River Islands CFD 2013- 1
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Taxes and assessments $ 606, 551 $ 1,04,61 $ 1,04,64 $ 3 Use of money and property - - 4, 214 4, 214
Miscellaneous 400,49 400,49 - ( 400,49)
Total revenues
EXPENDITURES:

Current:

Public works
Total expenditures

REVENUES OVER ( UNDER)

EXPENDITURES
OTHER FINANCING SOURCES ( USES):

Transfers out
Total other financing sources ( uses)
Net change in fund balances
FUND BALANCES:

Beginning of year
End of year
1, 007,00 1, 504, 610 1,08, 378 ( 396, 232)
18, 500 18, 500 26, 317 ( 7, 817)
18, 500 18, 500 26, 317 ( 7, 817)
988, 500 1, 486, 110 1, 082,61 ( 404, 09)
988, 500) ( 1, 083, 700) 1, 083,26) 674
988, 500) ( 1, 083, 700) 1, 083,26) 674
402,10 ( 965) $ ( 403, 375)
120, 289
119, 324
161
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Lathrop Land Acquisitions
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Use of money and property
Total revenues
Net change in fund balances
FUND BALANCES:

Beginning of year
End of year
183 $ 183
183 183
183 $ 183
1, 074
1, 257
162
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual ULOP RD -17 Levee Impact
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Taxes and assessments
Use of money and property
Total revenues
3, 029, 840 $ 3, 029, 840 $ 913, 227 $ ( 2, 116, 613)
2, 953) ( 2, 953)
3, 029, 840 3, 029, 840 910, 274 ( 2, 119, 566)
EXPENDITURES:

Current:

Public works 3, 029, 840 3, 029, 840 913, 226 2, 116, 614 Total expenditures 3, 029, 840 3, 029, 840 913, 226 2, 116, 614

REVENUES OVER ( UNDER)
EXPENDITURES - ( 2, 952) ( 2, 952)
Net change in fund balances $ $ ( 2, 952) $ ( 2, 952)
FUND BALANCES:

Beginning of year
End of year
2, 952)
163
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual DWR Grant - ULOP Project
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Intergovernmental $ - $ - $ 4, 052, 308 $ 4, 052, 308
Total revenues - 4, 052, 308 4, 052, 308
EXPENDITURES:

Current:

Public works - 4, 052, 308 ( 4, 052, 308)
Total expenditures

REVENUES OVER ( UNDER)

EXPENDITURES
4, 052, 308 ( 4, 052, 308)
Net change in fund balances $
FUND BALANCES:

Beginning of year ( 518, 435)
Restatement 518, 438
Beginning of year, as restated 3
End of year $ 3
164
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual CLSP Off -Site Roadway Improvement
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Taxes and assessments $ 68, 355 $ 68, 355 $ 37, 697 $
Use of money and property - 1, 705
Total revenues 68, 355 68, 355 39, 402
30, 658)
1, 705
28, 953)
Net change in fund balances $ 68, 355 $ 68, 355 39, 402 $ FUND BALANCES:

Beginning of year 124, 453
End of year $ 163, 855
28, 953)
165
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual South Lathrop CFD 2019- 1
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Taxes and assessments
Use of money and property
Total revenues
EXPENDITURES:

Current:

Public works
Capital outlay
Total expenditures

REVENUES OVER ( UNDER)

EXPENDITURES
OTHER FINANCING SOURCES ( USES):

Transfers out
Total other financing sources ( uses)
Net change in fund balances
FUND BALANCES:

Beginning of year
End of year
542, 43 $ 542, 43 $ 553, 273 $
14, 716
10, 850
14, 716
542, 43 542, 43 567, 989 25, 566
290, 578 346, 515 236, 924 109, 51
230, 00 80, 000 - 80, 000
520,78 426, 515 236, 924 189, 51
21, 845 115, 908 331, 065 215, 17
9, 180) 178, 050) ( 178, 050)
9, 180) 178, 050) ( 178, 050)
12, 665 $ ( 62, 142) 153, 015 $ 215, 17
1,49, 288
1, 302,03
166
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Central Lathrop CFD 2019-
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Taxes and assessments $ 860, 00 $ 860, 00 $ 1, 062, 449 $ 202, 449 Use of money and property - 2, 052 2, 052
Miscellaneous - 4, 620 4, 620
Total revenues
EXPENDITURES:
860, 00 860, 00 1, 069, 121 209, 121
Current:

Public works 773, 064 880, 086 851, 999 28, 087
Total expenditures

REVENUES OVER ( UNDER)

EXPENDITURES
OTHER FINANCING SOURCES ( USES):

Transfers out
Total other financing sources (uses)
Net change in fund balances
FUND BALANCES:

Beginning of year
End of year
773, 064 880, 086 851, 999 28, 087
86, 936 ( 20, 086) 217, 122 237,08
40, 160) ( 157, 560) ( 157, 560)
40, 160) ( 157, 560) ( 157, 560)
46, 776 $ ( 177, 646) 59,62 $ 237,08
230, 610
290, 172
167
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Stewart Economic Dev Fee 80"/ 0
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Use of money and property
Total revenues
Net change in fund balances
FUND BALANCES:
2, 120 $ 2, 120
2, 120 2, 120
2, 120 $ 2, 120
Beginning of year
6, 273
End of year
8, 393
168
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual TOT Trust
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Taxes and assessments $ - $ - $ 51, 420 $
Use of money and property - - 16, 638
51, 420
16, 638
Total revenues - - 68, 058 68, 058
Net change in fund balances $ - $ 68, 058 $
FUND BALANCES:

Beginning of year 1, 227,11
End of year $ 1, 295,69
68, 058
169
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Gateway Business Park
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Taxes and assessments $ 83, 500 $
Use of money and property -
Total revenues
EXPENDITURES:
83, 500 $
83, 500 83, 500
151, 744 $
1, 018
68, 244
1, 018
152, 762 69, 262
Current:

Public works 79, 815 79, 914 17, 273 62,41
Total expenditures 79, 815 79, 914 17, 273 62,41

REVENUES OVER ( UNDER)
EXPENDITURES 3, 685 3, 586 135, 489 131, 903
Net change in fund balances $ 3, 685 $
FUND BALANCES:
3, 586 135, 489 $ 131, 903
Beginning of year 51, 839
End of year
187, 328
170
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Storm Drain
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Use of money and property $ $ $ 12,69 $ 12,69
Total revenues - 12,69 12,69
EXPENDITURES:

Current:

Public works 250, 00 782, 000 - 782, 000
Total expenditures 250, 00 782, 000 - 782, 000

REVENUES OVER ( UNDER)

EXPENDITURES
OTHER FINANCING SOURCES ( USES):

Transfers in
Transfers out
Total other financing sources ( uses)
Net change in fund balances
FUND BALANCES:

Beginning of year
End of year
250, 000) ( 782, 000) 12,69 794, 169
250, 00 250, 00 250, 00
70) ( 450) ( 450)
249, 930 249, 550 249, 550
70) $ ( 532, 450) 261, 79 $ 794, 169
641, 168
902, 887
171
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Park in Lieu
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Taxes and assessments $ - $ - $ 570, 038 $ 570, 038
Use of money and property - 15, 887 15, 887
Total revenues - 585, 925 585, 925
Net change in fund balances $ - $ 585, 925 $ 585, 925
FUND BALANCES:

Beginning of year 1,48,67
End of year $ 1, 734, 092
172
City of Lathrop
Custodial Funds
Year Ended June 30, 2023
Custodial Funds account for assets held by the City as agent for individuals governmental entities and non- public organizations. These funds include the following:

MOSSDALE VILLAGE ASSESSMENT DISTRICT FUND
To account for the special assessments associated with the payment of the limited -obligation improvement bonds for the Mossdale Village Assessment District.

CROSSROADS ASSESSMENTS FUND
To account for the special assessments associated with the payment of the limited -obligation improvement bonds for the Crossroads Assessment District.

JOINT WASTEWATER COMMUNITY FACILITIES DISTRICT FUND
To account for the special assessments associated with the payment of the limited -obligation improvement bonds for the Joint Wastewater Community Facilities District.

NORTH HARLAN WATER IMPROVEMENT FUND
To account for special assessments associated with the payment of limited obligation improvement bonds for the North Harlan Water Improvement District.

COMMUNITY FACILITIES DISTRICT CLSP INFRASTRUCTURE FUND
To account for special assessments associated with the infrastructure in the Central Lathrop Specific Plan area.

SEWER ASSESSMENT DISTRICT NO. 1 FUND
1 o account tor the special assessments associated with the payments of the limited - obligation improvement bonds for the Lathrop Sanitary Sewer Assessment District No. 1.

MOSSDALE VILLAGE REASSESSMENT 2015 - 1 FUND
To account for the special assessments associated with the payment of bonds for the Mossdale Village District. 173
City of Lathrop
Combining Statement of Fiduciary Net Position
Custodial Funds
For the year ended June 30, 2023
Joint Wastewater
Mossdale Village Crossroads Community North Harlan Water Assessment District Assessments Facilities District Improvement ASSETS
Cash and investments $ 6, 494 $ 577, 194 $ 829,67 $
Receivables:

Accrued interest 1, 473 997 1, 592
Restricted assets:

Cash and investments with fiscal agents 8, 288, 751 766, 343 706, 937 Total assets 8, 296, 718 1, 344, 534 1, 538, 396

LIABILITIES
Accounts payable - - 131, 097
Deposits payable - -
Total liabilities - - 131, 097 -

NET POSITION
Restricted for:

Individuals, organizations, and other governments 8, 296, 718 1, 344, 534 1, 407, 299 Total Net Position 8, 296, 718 $ 1, 344, 534 $ 1, 407, 299 $ 174
Community Mossdale Village
Facilities District Sewer Assessment Reassessment 2015- Mossdale Village CLSP Infrastructure District # 1 1 CFD 2003- 1
Total
Custodial
Funds
2,01, 911 $ 5, 097 $ 691, 175 $ 1, 330, 500 $ 5, 642, 238 3, 616 27 1, 332 4, 353 13, 390
1, 269, 740 135, 471 248,09 5, 019, 340 16, 434, 791
3, 475, 267 140, 595 940, 716 6, 354, 193 22, 090, 419
357, 709 488, 806
30, 747 - - 30, 747
30, 747 357, 709 519,53
3, 444, 520 140, 595 940, 716 5, 996, 484 21, 570, 866
3, 444, 520 $ 140, 595 $ 940, 716 $ 5, 996, 484 $ 21, 570, 866 City of Lathrop
Combining Statement of Changes in Fiduciary Net Position Custodial Funds
For the year ended June 30, 2023
Joint Wastewater
Mossdale Village Crossroads Community North Harlan Water Assessment District Assessments Facilities District Improvement ADDITIONS:

Collections for assessment districts $ 1, 006,08 $ 757, 121 $ 610, 745 $ Receipts from others 7, 530, 127 -
Investment earnings 4, 131 30,20 3,56 844
Total additions 8, 540, 266 787, 441 614, 101
DEDUCTIONS:

Administrative expenses
Contractual services
Debt service
Total deductions
Change in net position
844
12, 921
240, 90
1, 692, 446
9, 631 11, 316
13, 825 7, 343
734, 000 567, 80
25,74
1, 946, 267 757, 456 586,29 25,74
6, 593, 999 29, 985 27, 572
NET POSITION:

Beginning of year 94, 416 2, 999, 592 266,37
Restatements 1, 608, 303 ( 1, 685, 043) 1,13, 490
Beginning of year, as restated 1, 702,19 1, 314, 549 1, 379, 727 24, 430)
24, 430
24, 430
End of year $ 8, 296, 718 $ 1, 344, 534 $ 1, 407, 299 $ 176
Community Mossdale Village Total
Facilities District Sewer Assessment Reassessment 2015- Mossdale Village Custodial CLSP Infrastructure District # 1 1 CFD 2003- 1
Funds
3, 206, 408 $ 143, 303 $ 510, 351 $ 545, 935 $
4, 928,37
67, 941 972 18, 862 38, 897
6, 779, 871
12, 459, 064
165, 323
3, 274, 349 144, 275 529, 213 5,13, 769 19, 404, 258
9, 416 7,45 12, 921 16, 462 105, 686
29, 613 18, 625 196, 206 506,12
2, 643, 082 398, 870 842, 274 1, 582, 296 8, 460, 838
2, 682, 111 406, 615 873,20 1, 794, 964 9, 073,36
592, 238 ( 262, 340) ( 344, 607) 3, 718, 805 10, 331, 222 484, 554 16, 785 412, 184 - 4, 298, 198
2, 367, 728 386, 150 873, 19 2,77, 679 6, 941, 446
2, 852, 282 402, 935 1, 285, 323 2,77, 679 11, 239, 644 3, 444, 520 $ 140, 595 $ 940, 716 $ 5, 996, 484 $ 21, 570, 866 This page intentionally left blank
178

STATISTICAL SECTION
This part of the City' sAnnual Comprehensive Financial Report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City' s overall financial health. In contrast to the financial section, the statistical section information is not subject to independent audit.

Financial Trends
These schedules contain trend information to help the reader understand how the City' s financial performance and well being have changed over time:

1. Net Position by Component

2. Changes in Net Position

3. Fund Balances of Governmental Funds

4. Changes in Fund Balance of Governmental Funds
Revenue Capacity
These schedules contain information to help the reader assess the City' s most significant local revenue
source, the property tax:

1. Property Tax Levies and Collections

2. Assessed Value and Estimated Actual Value of Taxable Property

3. Principal Property Taxpayers
Debt Capacity
These schedules present information to help the reader assess the affordability of the City' s current levels of outstanding debt and the City' s ability to issue additional debt in the future:

1. Direct and Overlapping Property Tax Rates

2. Direct and Overlapping Governments Sales Tax Rates

3. Legal Debt Margin Information

4. Outstanding Debt

5. Computation of Direct and Overlapping Debt

6. Pledged - Revenue Coverage
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader understand the environment within which the City' sfinancial activities take place:

1. Demographic and Economic Statistics

2. Principal Employers
Operating Information
These schedules contain service and infrastructure data to help the reader understand how the information in the City' sfinancial report relates to the services the City provides and the activities it performs:

1. Full- time and Part- time City Employees by Function

2. Operating Indicators by Function

3. Capital Asset Statistics by Function

4. Water Sold by Type of Customer

5. Water Rates

6. Ten Largest Water Customers

7. Top 25 Sales Tax Producers
Sources
Unless otherwise noted, the information in these schedules is derived from the Annual Comprehensive Financial Reports for the relevant year.
179

CITY OF LATHROP
Net Position by Component
Last Ten Fiscal Years
accrual basis of accounting)
Governmental activities:

Net investments in
capital assets
Restricted
Unrestricted
Total governmental activities net position
Business -type activities:

Net investments in
capital assets
Restricted
Unrestricted
Total business -type activities net position
Primary government:

Net investments in
capital assets
Restricted
Unrestricted
Total Primary government net position
2014
140, 357, 523
4, 865, 583
31, 716, 374
2015
145, 671, 748
7,33, 824
35, 612,93
176, 939, 480 $ 189, 018, 265
88, 125, 585
2, 696, 850
25, 692,76
92, 350,19
2, 995, 846
23, 944, 509
116, 515, 111 $ 119, 20, 674
228, 43, 108
7, 562, 433
57, 409, 050
238, 022,67
10, 729, 670
59, 557, 202
293, 454, 591 $ 308, 939
Source: City of Lathrop, California Comprehensive Annual Financial Reports. 2016
148, 474, 931
10, 223, 760
38, 941, 548
197, 640, 239
93,06,14
2, 698, 250
26, 437, 255
123, 042, 419
242, 381, 845
12, 922, 010
65, 378, 803
320, 682,58
2017
155, 971, 046
11, 858, 920
47, 769, 952
215, 599, 918
103, 695, 833
1, 706, 637
37, 146, 214
142, 548, 684
259, 666, 879
13, 565,57
84, 916, 166
358, 148, 602
180

CITY OF LATHROP
Net Position by Component
Last Ten Fiscal Years
accrual basis of accounting)
2018 2019 2020 2021 2022 2023
159, 727, 304
10, 376, 172
52, 396, 920
222, 500, 396
120, 279, 431
1, 650, 031
30, 919, 752
152, 849, 214
280, 06, 735
12, 026, 203
83, 316, 672
375,49, 610
179, 501, 255
13, 552, 647
72, 645, 973
265, 699, 875
150, 452, 677
1, 652, 234
34, 710, 083
186, 814, 994
329, 953,32
15, 204, 881
107, 356, 056
452, 514, 869
206,11, 349
16, 013, 046
87, 005, 385
309, 229, 780
160, 481, 074
1, 651, 396
43, 373,59
205, 505, 829
366, 692, 423
17, 664, 442
130, 378, 744
514, 735, 609
218, 894, 403
103, 964, 923
33, 463, 086
356,22, 412
156, 93, 462
1, 650,48
62, 502, 764
221, 16, 874
375, 87,65
105, 615, 571
95, 965, 850
577, 439, 286
250, 65, 011
122, 949,90
47, 696, 013
421, 251, 014
174, 059, 421
1, 652, 915
70,85, 536
246, 497, 872
424, 664, 432
124, 602, 905
118, 41, 549
667, 748, 886
320, 475, 208
125, 033, 370
59, 792, 854
505, 301, 432
206,99, 495
1, 408, 865
72, 411, 962
280, 120, 322
526, 774,03
126, 442, 235
132, 204, 816
785, 421, 754
181

CITY OF LATHROP
Changes in Net Position
Last Ten Fiscal Years
accrual basis of accounting)
2014 2015 2016 2017
Expenses:

Governmental activities:

General government $ 4, 680, 110 $ 7, 449, 500 $ 5, 614, 173 $ 4, 580, 381 Public safety 5, 940, 125 6, 962, 351 8, 048, 625 9, 683,36 Public works 13, 888, 678 10, 864, 104 7, 864, 470 13,25, 373 Culture and leisure 1,11, 917 779, 976 1, 395, 287 1, 300, 832 Community development 1, 573, 972 602, 719 1, 712, 156 993, 885 Interest on long- term debt 924,1 340, 120 880, 036 319, 164 Total governmental activities expense 28, 119, 743 26, 998, 770 25, 514, 747 30, 003, 271 Business -type activities:

Water 7, 376, 261 5, 108, 071 4, 941, 845 5, 828, 411
Wastewater 6, 289, 560 4,33, 501 3, 587, 602 5, 393, 728 Total business - type activities expenses 13, 665, 821 9, 541,72 8, 529, 447 11, 222, 139 Total primary government expenses $ 41, 785, 564 $ 36, 540, 342 $ 34, 044, 194 $ 41, 225, 410 Program revenues:

Governmental activities:

Charges for services:

General Government 397, 607 491, 076 551, 63 462, 696
Public Safety 716, 30 356, 989 365, 009 231, 164
Public Works 202, 488 248, 09 258, 005 1, 697, 831
Culture and leisure 242, 500 220, 963 205, 376 283, 662 Community development 2, 189, 603 2, 551, 889 3, 947, 881 3, 131, 768 Operating grants and contributions 4, 947, 223 4, 969, 720 5, 016, 283 4, 841, 037 Capital grants and contributions 23, 115, 518 22, 155,91 9, 759, 080 30, 838, 179 Total governmental activities
program revenues 31, 811, 299 30, 993,17 20, 103, 247 41,86, 337 Business -type activities:

Charges for services:

Water 6, 551, 486 6, 042, 517 5, 849, 963 6, 856, 028
Wastewater 5, 827, 902 5, 730, 148 5, 233, 840 5, 791, 155 Operating grants and contributions 12, 002, 670 - -
Capital grants and contributions 159, 854 159, 854 159, 854 159, 854 Total business -type activities
program revenues 24, 541, 912 11, 932, 519 11, 243, 657 12, 807, 037 Total primary government
program revenues $ 56, 353, 211 $ 42, 926, 436 $ 31,46, 904 $ 54, 293, 374 Net revenues ( expenses):

Governmental activities 3, 691, 556 3, 995, 147 ( 5, 411, 500) 11, 483, 066 Business - type activities 10, 876, 091 2, 390, 947 2, 714, 210 1, 584, 898 Total net revenues ( expenses) $ 14, 567, 647 $ 6, 386, 094 $ (2, 697, 290) $ 13, 067, 964 General revenues and other changes in net position:

Governmental activities:

Taxes:

Property tax 2, 946, 083 3, 273, 006 3, 566, 656 3, 980, 606 Sales and use taxes 6,76, 994 5, 947, 812 6, 209, 105 6, 337, 138 Franchise taxes 705, 405 685, 140 518, 13 771, 288
Other taxes 419, 267 449, 950 743, 896 565, 715
Motor vehicle in lieu, unrestricted 1,18, 489 1, 237, 606 1, 324, 094 1, 555, 026 Investment income 67, 431 80,44 346, 915 19, 282
Other general revenues 395, 810 301, 192 1, 745, 978 10, 090,96 Transfers ( 5, 626, 465) ( 84, 391) ( 421, 353) ( 16, 842, 538) Total governmental activities 6, 703, 014 11, 891, 159 14, 033, 474 6, 476, 613 Business - type activities:

Investment income 49, 915 63, 492 200, 063 214, 510
Miscellaneous 1, 392, 651 675, 204 416, 119 864, 319
Transfers 5, 626, 465 84, 391 421, 353 16, 842, 538
Total business - type activities 7, 069,31 823, 087 1, 037, 535 17, 921, 367 Total primary government $ 13, 772, 045 $ 12, 714, 246 $ 15, 071,09 $ 24, 397, 980 Changes in net position
Governmental activities
Business -type activities
Total primary government
10, 394, 570
17, 945, 122
28, 339, 692
15, 886, 306
3, 214, 034
19,00, 340
8, 621, 974
3, 751,45
12, 373, 719
17, 959, 679
19, 506, 265
37, 465, 944
182

CITY OF LATHROP
Changes in Net Position
Last Ten Fiscal Years
accrual basis of accounting)
2018 2019 2020 2021 2022 2023
4, 917, 617 $ 5, 307, 052 $ 5, 944, 111 $ 6, 544, 720 $ 6, 994, 053 $ 9, 350, 898 10, 965, 814 11, 284, 963 12,21, 072 11, 729, 668 11, 628, 050 15, 350, 996 13, 066, 756 16, 835, 406 19,95, 792 19, 892, 748 14, 711, 011 36, 027, 481 1, 331, 811 1, 442, 202 1, 468,71 1, 466, 177 11, 559, 470 3, 999, 365 1, 256, 506 977, 552 1, 317, 693 8, 227, 717 1, 805, 271 1, 537, 163 100, 088 46,10 89, 123 241, 454 233, 740 225, 835
31, 638, 592 35, 893, 585 40, 136, 262 48, 102, 484 46, 931, 595 66, 491, 738 4, 969, 618 6, 303, 489 6, 906, 021 6, 767, 503 7, 099, 213 9, 130, 486 1, 204, 762 9, 206, 503 7, 476,39 7, 926, 063 7, 853, 576 9, 457,06 6, 174, 380 15, 509, 992 14, 382, 460 14, 693, 566 14, 952, 789 18, 587, 892 37, 812, 972 $ 51, 403, 577 $ 54,18, 722 $ 62, 796, 050 $ 61, 884, 384 $ 85, 079, 630 438, 974
424, 909
1,84, 297
279, 505
2, 916, 089
5, 459, 511
10, 069, 773
528, 673
775, 581
1, 874, 445
341, 06
3, 880, 593
5, 674, 834
40, 920, 445
20, 773, 058 53, 995, 587
465, 303 6, 961, 502 9, 212, 336
504, 277 243, 05 139,11
473, 06 3, 581, 829 2, 816, 090
285, 143 124, 652 363, 671
6, 507, 913 3, 880, 053 8, 161, 272
6, 105, 531 2, 709, 984 5, 236, 622
43, 291, 735 16, 740, 299 25, 390, 248
57, 632, 938 34, 241, 354 51, 319,50
8, 753, 003
51, 938
3, 250, 469
379, 681
6, 041, 251
7, 477, 256
66, 235, 438
92, 189, 036
8, 331, 835 9, 052, 906 10, 352, 614 10, 239, 976 10, 758, 681 10, 765, 615 6, 533, 098 7, 923,42 8, 633, 545 8, 776, 287 9, 141, 235 10, 428, 292 159, 854 32, 556, 339 11, 691, 580 6, 862,37 - 29, 098, 366 15, 024, 787 49, 533, 187 30, 677, 739 25, 879, 100 19, 899, 916 50, 292,73 35, 797, 845 $ 103, 528, 774 $ 88, 310, 677 $ 60, 120, 454 $ 71, 219,66 $ 142, 481, 309 10, 865, 534) 18,02, 002 17, 496, 676 ( 13, 861, 130) 4, 387, 755 25, 697, 298 8,50, 407 34, 023, 195 16, 295,79 11,85, 534 4, 947, 127 31, 704, 381 2, 015, 127) $ 52, 125,97 $ 33, 791, 955 $ (2, 675, 596) $ 9, 334, 882 $ 57, 401, 679 4, 285, 832 4, 710, 374 5, 333, 918 8, 613, 482 8, 613, 482 10, 509, 687 9, 211,28 12, 001, 476 10, 501, 615 18,90, 475 18,90, 475 21,85, 429 877, 633 1, 204, 106 1, 241, 635 1, 530, 878 1, 530, 878 2,85, 062 634, 335 666, 791 582,52 30, 620, 998 30, 620, 998 15, 842, 524 1, 794, 526 1, 898, 011 2, 193, 976 738,08 738,08 3, 413, 255 979, 43 1, 996, 503 2, 786, 291 701, 941 701, 941 3, 901, 381 379, 51 149, 364 184, 705 945, 547 945, 547 381, 860
137, 582) 2, 439, 302 3, 255, 411 1, 777, 930 1, 777, 930 3, 143, 911 18, 025,56 25, 065, 927 26, 080, 103 63, 119, 959 63, 119, 959 60, 763, 109 405, 014 782, 839 741, 372 364, 403 364, 403 952, 746
907, 527 1, 599, 048 4, 909, 595 5, 692, 221 5, 692, 221 6, 526, 718 137, 582 ( 2, 439, 302) ( 3, 255, 411) ( 1, 777, 930) ( 1, 777, 930) ( 3, 143, 911) 1, 450, 123 ( 57, 415) 2, 395, 556 4, 278, 694 4, 278, 694 4, 335, 553 19, 475, 179 $ 25, 008, 512 $ 28, 475, 659 $ 67, 398, 653 $ 67, 398, 653 $ 65, 098, 662 7, 159, 522 43, 167, 929 43, 576, 779 49, 258, 829 67, 507, 714 86, 460,07 10, 300, 530 33, 965, 780 18, 690, 835 15, 464, 228 9, 225, 821 36, 039, 934 17, 460, 052 $ 77, 133, 709 $ 62, 267, 614 $ 64, 723, 057 $ 76,33, 535 $ 122, 500, 341 183

CITY OF LATHROP
Fund Balances of Governmental Funds
Last Ten Fiscal Years
modified accrual basis of accounting)
General fund:

Nonspendable
Restricted
Committed
Assigned
Unassigned
Total general fund
All other governmental funds:

Restricted
Committed
Assigned
Unassigned
Total all other governmental funds
2014 2015 2016 2017
6, 380, 018 $ 6, 852, 691 $ 6,65,77 $ 6, 180, 434
2,33,34
16, 234, 527 11, 091, 860 12, 861, 107 16, 496, 212
22, 614, 545 $ 17, 944, 551 $ 21, 760, 018 $ 22, 676,46 3, 890, 049
12, 977, 322
930, 347
17, 797,18
FY2021 reflects the implementation of GASB 84.

Source: City of Lathrop, California
6, 823, 678
22, 534, 880
880, 383
364)
30, 238, 577
4, 513, 322
25, 829, 474
975, 042
233)
31,17, 605
4, 701, 300
35, 779, 675
784, 139
120)
41, 264, 994
184

CITY OF LATHROP
Fund Balances of Governmental Funds
Last Ten Fiscal Years
modified accrual basis of accounting)
2018 2019 2020 2021* 2022 2023
5, 650, 104 $ 5, 225, 742 $ 3, 470, 982 $ 3, 282, 311
29, 678, 802 29, 664, 824
2, 616, 835
21, 538, 365 31, 169, 562 4, 289,78 6,79, 913
2, 405, 864 $ 9, 766, 137
44, 763, 906 40,47, 513
5, 704, 542 6, 145, 676
27, 188, 469 $ 36,95,04 $ 40, 055, 897 $ 39, 627, 048 $ 52, 874, 312 $ 56, 359,26 3, 797, 087
36, 015, 106
663,74
4, 701, 645
49, 619, 728
549, 720
163, 756)
9, 116, 860
58, 214, 668
572, 817
2, 500)
41, 955, 830 $ 41,19, 819 $ 125, 033, 370
7, 556, 009
169, 617) ( 521, 256) ( 409, 608)
40,75, 867 $ 54, 707, 337 $ 67, 901, 845 $ 41, 786, 213 $ 40, 898, 563 $ 132,79, 771 185

CITY OF LATHROP
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
modified accrual basis of accounting)
Revenues:

Taxes and assessments
Licenses and permits
Fines, forfeitures, and penalties
Intergovernmental
Use of Money & Property
Charges for current services
Contributions ( Developer)
Other
Total revenues
Expenditures
Current:

General government
Community development
Public safety
Public works
Culture and leisure
Capital Outlay
Debt service:

Principal retirement
Lease principal retirement
Interest and fiscal charges
Total expenditures
Excess ( deficiency) of
revenues over (under)
expenditures
2014 2015 2016 2017
15, 462, 332 $ 21,68, 849 $ 18, 494,60 $ 22, 885, 183
749, 845 1, 373, 909 1, 283, 193 1, 808, 623
1, 476, 258 1, 486, 888 1, 658,39 1, 949,10
13, 291, 995 11,77,49 5, 489, 546 3, 134, 272
116, 98 159, 262 382, 74 392, 493
2, 727, 193 2,07, 080 3, 725, 964 3, 605, 846
9, 779, 408 1, 094, 140 19, 675, 946
536, 779 4, 202, 190 3, 523,48 1, 353, 215
44, 140, 778 $ 42, 969, 467 $ 34, 558, 074 $ 54, 805, 488 4, 240, 661
1, 323, 932
5, 829,09
17, 040, 900
1, 063, 957
9, 334, 496
274, 370
924,1
8, 063, 724
1, 254, 836
7, 030, 624
15, 482, 137
1, 048, 531
1, 604, 530
289, 709
340, 120
4, 675, 898
1, 657, 178
7, 297, 872
6,87, 275
1, 296, 370
4, 361, 924
1, 683, 347
390, 710
4,06, 106
784,63
9, 560, 119
7, 616, 246
1, 226, 638
2, 920, 897
265, 000
319, 164
40, 033,66 $ 35, 114, 211 $ 28, 050, 574 $ 27, 098, 933 4, 107, 712 $ 7, 855, 256 $ 6, 507,00 $ 27, 706, 555
Other financing sources ( uses):

Proceeds from issuance of long- term deb -
Transfers in 18, 471, 301
Transfers out ( 24, 097, 766)
17, 566, 636
17, 651, 027)
1,91, 652)
12, 971, 420
13, 392, 773)
10, 394, 523
27,37, 061)
Total other financing
sources (uses) $ ( 5, 626, 45) $ ( 84, 391) $ ( 1, 613, 005) $ (16, 842, 538) Net change in fund balances $ ( 1, 518, 753) $ 7,70, 865 $ 4, 894, 495 $ 10, 864, 017 Debt service as a percentage of
noncapital expenditures
FY2021 reflects the implementation of GASB 84.

Source: City of Lathrop, California

4.1% 1.9% 9.6% 2.5%
186

CITY OF LATHROP
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
modified accrual basis of accounting)
2018 2019 2020 2021*
22, 571, 206
1, 266, 197
2,37, 680
4,20, 261
1, 366, 160
3, 508, 608
2, 751, 850
813, 74
38, 935, 696
4, 770, 853
1,09, 714
10, 724, 423
7, 048,16
1, 275, 334
9, 761, 990
285, 000
100, 088
35,07, 490
1, 823, 951
2, 542,51
4, 373, 978
2, 433, 126
4, 656, 065
536, 277
550, 982
52, 224, 420
5, 137, 588
838, 993
11, 222, 012
9,84, 165
1, 384, 798
2, 643, 451
46,10
35, 075, 418 $ 31, 257, 417
32, 969, 640
2, 930, 344
1, 973, 18
5, 281, 487
3, 299, 084
4, 523, 327
357, 105
657, 995
51, 992, 120
5, 748, 979
1,53,19
12, 001, 225
10, 701, 329
1, 411, 336
6, 950, 445
290, 00
89, 123
59, 694, 541
3, 191, 727
1, 628, 103
7, 045,36
701, 941
6, 208, 805
7, 595,47
945, 547
87, 011, 247
6, 241, 381
1, 220, 515
11, 507, 852
19, 627, 773
1, 323, 042
11, 300, 021
300, 00
241, 454
38,45, 556 $ 51, 762, 038
3, 860, 278 $ 20, 967, 003 $ 13, 646, 564 $ 35, 249,09
12, 389, 403
12, 526, 985)
14, 380, 867
11, 941, 565)
24, 940,59
21, 685, 548)
137, 582) $ 2, 439, 302 $ 3, 255, 411
3, 722, 696 $ 23, 406, 305 $ 16, 901,75

1.5% 0.2% 1.2%
35, 131, 963
33,54, 033)
1, 777, 930
37, 027, 139

1.4%
2022
67, 116,03
386, 46
1, 588, 616
10, 094, 787
2, 101, 280)
13, 859, 233
10, 621, 451
1, 344, 184
102, 909, 560
7, 124, 908
1, 722, 885
11, 552, 853
16, 617, 416
3, 405,73
24,67, 638
352,16
233, 740
65, 277,29
2023
53, 295,37
2,05,03
1, 529, 724
18,40,97
4, 030, 511
8, 654, 509
2, 017, 292
374,77
90, 247, 050
9, 372, 651
1, 282, 370
14, 956, 148
25, 566, 909
3, 921, 574
22, 666, 952
315, 000
367, 507
225, 835
78, 674, 946
37, 632, 331 $ 11, 572, 104
26, 553,63
32, 233, 805)
43, 691, 356
40, 547, 445)
1, 462, 298
5, 680, 242) $ 4, 606, 209
31, 952, 089 $ 16,78, 313

1.4% 1.0%
187

CITY OF LATHROP
Property Tax Levies and Collections
Last Ten Fiscal Years
Collected within the Fiscal
Year of Levy Total Collection to Date
Taxes Levied Collection in
Fiscal for the Fiscal Percent Subsequent
Year Year Amount of Levy Years Amount
Percent
of Levy
2014 2, 821, 126 2, 821, 126 100. 00% - 2, 821, 126 100. 00% 2015 3, 098, 364 3, 098, 364 100. 00% - 3, 098, 364 100. 00% 2016 3,53, 607 3,53, 607 100. 00% 3,53, 607 100. 00%
2017 3, 727, 479 3, 727, 479 100. 00% 3, 727, 479 100. 00% 2018 4, 125, 753 4, 125, 753 100. 00% 4, 125, 753 100. 00% 2019 4, 309, 587 4, 309, 587 100. 00% 4, 309, 587 100. 00% 2020 4, 812, 631 4, 812, 631 100. 00% 4, 812, 631 100. 00% 2021 5, 326, 609 5, 326, 609 100. 00% 5, 326, 609 100. 00% 2022 5, 853, 282 5, 853, 282 100. 00% 5, 853, 282 100. 00% 2023 6,97,06 6,97,06 100. 00% 6,97,06 100. 00%
Source: County of San Joaquin, California, Office of the Controller. 188

CITY OF LATHROP
Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years
in thousands)
City
Gross Taxable Assessed Value Net Taxable Total
Less: Assessed Direct Tax
Fiscal Year Secured Unsecured SBE Nonunitary Exemptions Value Rate 2014 1, 839, 562, 001 136, 58, 139 5, 070, 340 ( 18, 622, 849) 1, 962, 577, 631 0. 144% 2015 2, 028, 168, 720 148, 658, 207 5, 070, 340 ( 19, 297, 974) 2, 162, 599, 293 0. 143% 2016 2, 188, 540, 780 198,30, 929 5, 070, 340 ( 18, 624, 442) 2, 373, 117, 607 0. 141% 2017 2, 559, 643, 198 163, 451, 777 6, 170, 020 ( 18, 624, 442) 2, 710, 640, 553 0. 138% 2018 2, 941, 872, 358 174,27, 391 6, 170, 020 ( 18, 831, 913) 3, 103, 337, 856 0. 133% 2019 3, 117, 977, 243 190, 538, 705 6, 170, 020 3,14, 685, 968 0. 130% 2020 3, 554, 886, 516 282,02, 562 6, 170, 020 - 3, 843, 259, 098 0. 125% 2021 4, 139, 024, 746 280, 821, 500 15, 952, 158 - 4,35, 798, 404 0. 120% 2022 4, 787, 945, 754 304, 082, 430 15, 952, 158 5, 107, 980, 342 0. 115% 2023 5, 732, 986, 696 363, 749, 894 15, 952, 158 6, 112, 688, 748 0. 110% NOTE:

In 1978 the voters of the State of California passed Proposition 13 which limited property taxes to a total maximum rate of 1% based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an " inflation factor" (limited to a maximum increase of 2%). With few exceptions, property is only reassessed at the time that it is sold to a new owner. At that point, the new assessed value is re -assessed at the purchase price of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above.

Source: County of San Joaquin, California, Office of the County Assessor. 189

CITY OF LATHROP
Principal Property Taxpayers
Current Year and Ten Years Ago
Taxpayer
2023
Taxable
Assessed Value
TESLA MOTORS INC $
LIT INDUSTRIAL LP $

SOUTH LATHROP LAND LLC

TRIPOINT LOGISTICS CENTER ILP LLI

CALIFIA LLC

UNITED PARCEL SERVICE INC

PW FUND A LP

J R SIMPLOT COMPANY CORP
COLONY 2019 2 BULK INDUSTRIAL

CENTERPOINT PROPERTIES TRUST
251, 826, 249
227, 405, 146
197, 982,19
132, 943, 168
94, 630, 318
86, 022, 770
74, 976, 973
70, 054, 123
67, 275, 425
65, 167, 548
Percent of
Total City
Taxable
Assessed
Value

4. 12%

3. 72%

3. 24%

2. 17%

1. 55%

1. 41%

1. 23%

1.5%

1.0%

1. 07%
Source: County of San Joaquin, California, Office of the County Assessor. 2014
Taxable
Assessed
Value
57, 418, 806
47, 626, 291
Percent of
Total City
Taxable
Assessed
Value

0.0%

2. 93%

0.0%

2. 43%

0.0%

0.0%
190

CITY OF LATHROP
Property Tax Rates
Direct and Overlapping Governments
Last Ten Fiscal Years
rate per $ 100 of assessed value)
Fiscal Basic
Year County -wide Levy (1) School ( 2) All Other Total Rate 2014 1. 00000% 0.9250% 0.0000% 1. 09250%
2015 1. 00000% 0.9230% 0.0000% 1. 09230%
2016 1. 00000% 0. 14200% 0.0000% 1.4200%
2017 1. 00000% 0. 12820% 0.0000% 1.2820%
2018 1. 00000% 0. 13030% 0.0000% 1.3030%
2019 1. 00000% 0. 12280% 0.0000% 1.2280%
2020 1. 00000% 0. 11400% 0.0000% 1.1400%
2021 1. 00000% 0. 10490% 0.0000% 1.0490%
2022 1. 00000% 0. 13820% 0.0000% 1.3820%
2023 1. 00000% 0. 13660% 0.0000% 1.3660%
NOTE:
1) In 1978, California voters passed Proposition 13 which sets the property tax rate at a

1. 00% fixed amount. This 1. 00% is shared by all taxing agencies, including the City of Lathrop, for which the subject property resides within. The City of Lathrop' sportion varies by several Tax Rate Areas (TRAs) within the City.

Source: San Joaquin County Assessor 2011/ 12 - 2020/1 Tax Rate Table 191

CITY OF LATHROP
Sales Tax Rates
Direct and Overlapping Governments
Last Ten Fiscal Years
Measure
City Measure C Transportation State of
Fiscal Direct K General Development San Joaquin California Year Rate Rate Purpose Act Rate County Rate Rate Total
2014 1. 00% 0. 50% 1. 00% ** 0. 25% 1. 00% 5. 25% 9. 00% 2015 1. 00% 0. 50% 1. 00% ** 0. 25% 1.00% 5. 25% 9. 00% 2016 1. 00% 0. 50% 1. 00% ** 0. 25% 1. 00% 5. 25% 9. 00% 2017 1. 00% 0. 50% 1. 00% ** 0. 25% 1. 00% 5. 00% 8. 75% 2018 1. 00% 0. 50% 1. 00% ** 0. 25% 1. 00% 5. 00% 8. 75% 2019 1. 00% 0. 50% 1. 00% ** 0. 25% 1. 00% 5. 00% 8. 75% 2020 1. 00% 0. 50% 1. 00% ** 0. 25% 1.00% 5. 00% 8. 75% 2021 1. 00% 0. 50% 1. 00% ** 0. 25% 1. 00% 5. 00% 8. 75% 2022 1. 00% 0. 50% 1. 00% ** 0. 25% 1. 00% 5. 00% 8. 75% 2023 1. 00% 0. 50% 1. 00% ** 0. 25% 1. 00% 5. 00% 8. 75% NOTE:

A 1. 00% increase in Sales and Use Tax became effective as of April 1, 2009 to augment the State of California' s budget. On May 19, 2009, the voters did not approve the proposed " Budget Stabilization" constitutional amendment and the expiration date of this 1. 00% increase was on July 1, 2011.

On November 6, 2012 the voters of Lathrop approved Measure C. Measure C is an additional 1: sales tax to be used for Public Safety and essential City services
Source: City of Lathrop, California Finance Department
County of San Joaquin, California, Office of the Auditor -Controller 192
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193

CITY OF LATHROP
Legal Debt Margin Information
Last Ten Fiscal Years
2014 2015 2016 2017
Gross Assessed Valuation
Debt Margin Ratio ( 1)
Debt Margin ( Limit)
Less: total net debt applicable to limit:

General obligation bonds
1, 962, 577, 631 $ 2, 162, 599, 293 $ 2, 373, 117, 607 $ 2, 710, 640, 553

3. 75% 3. 75% 3. 75% 3. 75%
73, 596, 661 $ 81, 097, 473 $ 88, 991,10 $ 101, 649, 021 Net Legal Debt Margin $ 73, 596, 661 $ 81, 097, 473 $ 88, 991,10 $ 101, 649, 021 Total debt applicable to the the limit
as a percentage of debt limit
Notes
0% 0% 0% 0%
1) The Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation. However, this provision was enacted when assessed valuation was based upon 25% of market value.

Effective with the 1981- 82 fiscal year, each parcel is now assessed at 100% of market value ( as of the most recent change in ownership for that parcel.) The computation shown above reflects a conversion of assessed valuation data for each fiscal year from the current full valuation perspective to the 25% level that was in effect at the time that the legal debt margin was enacted by the State of California for local governments located within the state.

The limit shown is 3. 75% ( one- fourth of the previous limit of 15%).

Source: City of Lathrop, California Finance Department and the County of San Joaquin, California, Office of the Controller 194

CITY OF LATHROP
Legal Debt Margin Information
Last Ten Fiscal Years
2018 2019 2020 2021 2022 2023
3, 103, 337, 856 $ 3,14, 685, 968 $ 3, 843, 259, 098 $ 4,35, 798, 404 $ 5, 107, 980, 342 $ 6, 112, 688, 748

3. 75% 3. 75% 3. 75% 3. 75% 3. 75% 3. 75%
116, 375, 170 $ 124, 300, 724 $ 144,22, 216 $ 166, 342, 440 $ 191, 549, 263 $ 229,25, 828 116, 375, 170 $ 124, 300, 724 $ 144,22, 216 $ 166, 342, 440 $ 191, 549, 263 $ 229,25, 828 0% 0% 0% 0% 0% 0%
195

CITY OF LATHROP
Outstanding Debt
Last Ten Fiscal Years
Governmental Activities Business -type Activities
Total
Fiscal Capital Leases Governmental Water Revenue Certificates of PNC Bank Year ( 1) Activities Bonds Notes Participation Loan ( 2) 2014 6, 865, 382 6, 865, 382 12, 970, 000 5, 667, 004
2015 6, 599, 319 6, 599, 319 12, 635, 000 5, 373, 806
2016 4, 190, 000 4, 190, 000 12, 635, 000 5, 070, 256
2017 3, 925, 000 3, 925, 000 11, 455, 000 ( 4) 4, 755, 863 2018 3, 640, 000 3, 640, 000 10, 846, 145 4,30,88
2019 3, 640, 000 3, 640, 000 10, 207, 524 4, 093, 638
2020 3,50, 000 3,50, 000 9, 550, 312 3, 744, 895
2021 3, 050,0 3, 050,00 8,73, 969 3,83, 839
2022 2, 745, 000 2, 745, 000 8, 177, 936 3, 010,37
2023 2, 430, 000 2, 430, 000 7, 461, 642 2, 623, 175
Notes: Details regarding the City' s outstanding debt can be found in the notes to the financial statements. 1) On July 1, 2005, the City entered into a capital lease agreement for the new City Hall Building. 2) On May 4, 2012, the City refunded the 2000 Certificates of Participation with the Compass Bank Loan. 3) These ratios are calculated using personal income and population for the prior calendar year. 4) On May 2017, the City refunded the Water Revenue Bonds.

Source: City of Lathrop, California Finance Department
196

CITY OF LATHROP
Outstanding Debt
Last Ten Fiscal Years
Business - type Activities
State Percentage
Revolving Capital Total Business- Total Primary of Personal Debt Per Fund Loan Leases type Activities Government Income Capita ( 3) 8, 956, 038 27, 593, 042 34, 458,24 105.3% 1, 742
8, 562, 968 26, 571, 774 33, 171, 094 93. 63% 1, 500
8, 160, 773 25, 866, 029 30, 056,29 82. 47% 1, 301
7,49, 237 23, 960, 100 27, 885, 100 69. 04% 1,49
7, 328, 146 22, 604, 779 26,44, 779 57. 43% 1, 081
6, 897, 278 21, 198, 440 24, 838, 440 47. 89% 996
6, 456,06 19, 751, 613 23, 101, 613 44. 54% 861
6, 005, 297 18, 263, 105 21, 313, 105 37. 65% 748
5,54, 128 16, 742, 101 19, 487, 101 30. 87% 622
5, 071, 412 15,56, 229 17, 586, 229 21.2% 501
197

CITY OF LATHROP
Computation of Direct and Overlapping Debt
June 30, 2023
FY 2022/3 City Assessed Valuation $ 6, 112, 688, 748
Redevelopment Agency Incremental Valuation $ -
Adjusted Assessed Valuation $ 6, 112, 688, 748
Overlapping Tax and Assessment Debt
Percentage
Applicable to
Total Debt City of City' s Share of
6/ 30/ 23 Lathrop ( 1) Debt 6/ 30/ 223
San Joaquin Delta Community College District $ 175, 675, 000 5. 682% $ 9,81, 854 Manteca Unified School District 211, 129, 885 22. 065% 46, 585, 809 Tracy Unified School District 28, 805, 000 0.01% 288
Banta School District 320, 00 72. 673% 232, 554
Manteca Unified School District Community Facility District No. 1989- 2 17, 655, 000 20. 749% 3, 663, 236 Manteca Unified School District Community Facility District No. 2005- 4 4, 755, 000 100. 000% 4, 755, 000 Banta School District Community Facilities District No. 2011- 1 3, 260, 000 100. 000% 3, 260, 000 River Islands Public Financing Authority Community Facilities District No. 2003- 1 344, 155, 000 100. 000% 344, 155, 000 River Islands Public Financing Authority Community Facilities District No. 2015- 1 185,10, 000 100. 000% 185,10, 000 River Islands Public Financing Authority Community Facilities District No. 2016- 1 48, 530, 000 100. 000% 48, 530, 000 River Islands Public Financing Authority Community Facilities District No. 2019- 1 63, 205, 000 100. 000% 63, 205, 000 River Islands Public Financing Authority Community Facilities District No. 2021- 1 35, 640, 000 100. 000% 35, 640, 000 City of Lathrop Community Facilities District No 2003- 1 3, 465, 000 100. 000% 3, 465, 000 City of Lathrop Community Facilities District No 2003- 4, 715, 000 100. 000% 4, 715, 000 City of Lathrop Community Facilities District No 2018- 1, I.A. s 1- 5 45, 510, 000 100. 000% 45, 510, 000 City of Lathrop 1915 Act Bonds 21, 010,00 100. 000% 21, 010,00 Reclamation District No. 17 Assessment District 20, 515, 719 56. 199% 11, 529, 629 California Statewide Community Development Authority 1915 Act Bonds 1, 867, 000 100. 000% 1, 867, 000 Total Overlapping Tax and Assessment Debt $ 1, 215, 322, 604 $ 833, 215, 369 Ratios to FY 2022/3 Assessed Valuation:

Total Overlapping Tax and Assessment Debt 13. 63%
Direct and Overlapping General Fund Obligation Debt
San Joaquin County Certificates of Participation
Manteca Unified School District General Fund Obligations City of Lathrop General Fund Obligations
Lathrop - Manteca Rural Fire Protection District Certificates of Participation Total Direct and Overlapping General Fund Debt
Total Direct Debt
Total Overlapping Debt
Combined Total Debt
54, 940, 000
13, 979, 000
2, 430, 000
3, 410, 000

6. 151% 3,79,59

22. 065% 3, 084, 466
100. 000% 2, 430, 000

78. 570% 2, 679, 237
11, 573, 063
2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non -bonded capital lease obligations.

Ratios to Adjusted Assessed Valuation
Total Direct Debt 0.4%
Combined Total Debt 13. 82%
Source: California Municipal Statistics, Inc.
2, 430, 000
842, 358, 432
844, 788, 432
198
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199

CITY OF LATHROP
Pledged - Revenue Coverage
Last Ten Fiscal Years
2000 Certificates of Participation/ PNC Bank Loan ( 1)
Debt Service
Less Net
Fiscal Water Operating Available
Year Revenue ( 3) Expenses ( 4) Revenue Principal Interest Coverage 2014 7, 884,87 3, 815, 990 4, 068, 897 283, 199 205, 801 8. 32 2015 6,42, 758 3, 484, 902 3, 157, 856 293, 198 195, 802 6. 46 2016 6, 385, 191 3, 479, 010 2, 906, 181 303, 550 185, 40 5. 94 2017 7, 834,87 4, 366, 161 3, 468, 726 314,93 174, 733 7. 09 2018 8, 491, 689 4, 969, 618 3, 522, 071 325,63 163, 67 7. 20 2019 9, 212, 760 6, 303, 489 2, 909, 271 336, 850 152,50 5. 95 2020 10, 949, 739 5,39, 228 5, 410, 511 348, 743 140, 257 11. 06 2021 10, 241, 182 6, 216, 829 4, 024, 353 361, 056 127, 944 8. 23 2022 10, 763, 857 6, 591,91 4, 172, 266 373, 803 115,97 8. 53 2023 11, 085, 970 8, 667, 182 2, 418, 788 386, 82 101, 900 4. 95 Note: Details regarding the City' s outstanding debt can be found in the notes to the financial statements.

Operating expenses do not include interest or depreciation expenses. 1) The 2000 COP' swere refunded by the PNC Bank Loan on May 4, 2012.

The Required Debt coverage ratio for the PNC Bank Loan is 1.0%. 2) The Required Debt coverage ratio for 2003 COP' s/ Pacific Premier Bank Loan & SRF Loan is 1. 00%. 3) Gross revenues include interest earnings and connection fees. 4) Operating expenses from Statement of Revenues, Expenses and Changes. 5) Source: Debt Service Schedule. The Water Revenue Certificates of Deposit Series 1993A were funded on May 24, 2000. On May 24, 2000 the City issued the Installment Purchase Certificates of Participation, 2000 Series A. On July 16, 2003 the City issued Revenue Bonds ( Water Supply Project), Series 2003. On May 4, 2012 the Compass Bank Loan refunded the 2000 COPs ( Compass Bank Loan Cash Flow and Yield Verification Report)
6) Expenses include 2000 Certificates of Participation Debt Service Requirements. 7) Debt Service Requirements of 2003 Certificates of Participation & SRF Loan is net of capitalized interest.

Source:

Fund:

Fund:
5620-- 480- 01-
5650-- 480- 01-
City of Lathrop, California Finance Department
200

CITY OF LATHROP
Pledged -Revenue Coverage
Last Ten Fiscal Years
2003 COP' S/ Pacific Premier Bank Loan & SRF Loan ( 2)
Debt Service
Net Available
Revenue (5) Principal Interest Coverage
3, 579, 897 680, 00 1, 681, 102 1. 52
2, 668, 856 728, 070 954, 719 1. 59
2, 417, 181 402, 196 945, 592 1. 79
2, 979, 600 411, 536 936, 254 2.1
3, 033,71 421, 091 926, 699 2.5
2, 420, 271 1, 069, 489 475, 545 1. 57
4, 921, 511 1, 093,53 451, 981 3. 19
3, 535, 353 1,22, 305 422, 79 2.9
3, 683, 266 1,52, 348 392, 686 2. 38
1, 930, 026 1,93, 631 361, 403 1. 24
201

CITY OF LATHROP
Demographic and Economic Statistics
Last Ten Calendar Years
Personal
Income (in Per Capita
Calendar Population thousands) Personal Unemployment
Year ( 1) ( 2) Income (2) Rate ( 2)
2013 19, 831 330, 960 16, 689 9.4%
2014 19, 786 327, 75 16, 566 10. 3%
2015 22, 112 354, 280 16, 022 8.5%
2016 23, 110 364, 434 15, 769 7.8%
2017 24,68 403, 896 16, 643 6.3%
2018 24, 936 457, 006 18, 327 5.2%
2019 26, 833 518, 675 19, 329 4.3%
2020 28, 503 566, 02 19, 859 9.6%
2021 31,31 631, 164 20, 145 8.4%
2022 35, 080 828,00 23, 625 5.1%
Sources: ( 1) California State Department of Finance
2) 2010 and later- Income, Age and Education Data - US Census Bureau, most recent American Community Survey
202

CITY OF LATHROP
Principal Employers
Current Year and Nine Years Ago
Employer
Testa
United Parcel Service ( UPS)
Pflug Packaging
Army Air Force Exchange Services
Wayfair
Super Store Industries ( SSI)
Simwon America
California Natural Products ( CNP)
MUSD ( Lathrop Schools)
In -N -Out Burger
BUSD ( R. I. Academies)
CBC Steel Buildings
Ashley Furniture
Target
Diamond Pet Foods
City of Lathrop
2023
Number of
Employees
3600
1500
450
400
400
390
388
384
352
300
261
220
190
172
163
158
Percent of
Total
Employment

26. 38%

10. 99%

3.0%

2. 93%

2. 86%

2. 84%

2.81%

2. 58%

2.0%

1. 91%

1. 61%

1. 39%

1. 26%

1.9%

1.6%
2014
Number of
Employees
Percent of
Total
Employment
0 0.0%
30 0. 45%
275 4. 13%
0 0.0%
0 0.0%
401 6. 02%
0 0.0%
250 3. 75%
235 3. 53%
50 0. 75%
38 0. 57%
100 1. 50%
0 0.0%
156 2. 34%
100 1. 50%
118 1. 77%
Total Employment" as used above represents the Estimated total employment of all employers located within City limits.

Source: California Labor Market Information, California EDD Website ( www. ca. gov) City of Lathrop Community Development Department
203

CITY OF LATHROP
Full -Time and Part -Time City Employees by Function
Last Ten Fiscal Years
Function 2014 2015 2016 2017 2018
General Government 23. 40 23. 60 24. 60 23. 60 23. 60
Public Safety ( 1) 32. 00 36. 98 36. 98 37. 98 35. 98
Public Works 21. 83 22. 83 29. 50 30. 80 33. 80
Community Development 8. 34 6.7 4. 00 3. 10 4. 10
Culture & Leisure 18. 41 20. 76 21. 00 20. 56 21. 01
Total Positions 103. 98 110. 84 116. 08 116. 04 118. 49 1) In June of 2022 the City launched its own police department. San Joaquin County Sheriff provided police protection prior to June 2022
Fire Service is provided by Lathrop Manteca Fire District.

Source: City of Lathrop, California Annual Adopted Budgets. 204

CITY OF LATHROP
Full -Time and Part -Time City Employees by Function
Last Ten Fiscal Years
2019 2020 2021 2022 2023

24. 60 26. 60 28. 63 30. 63 35. 25

36. 98 36. 98 36. 98 53. 68 57. 00

40.7 40.7 42.7 45.7 44. 65

4.3 4.3 4.0 5. 40 4. 10

21. 01 21. 01 28. 60 30. 60 36. 45
127. 49 129. 49 141. 08 165. 78 177. 45

CITY OF LATHROP
Operating Indicators by Function
Last Ten Fiscal Years
2014 2015 2016 2017 2018 2019 2020 2021 2022
Police:

Arrests 489 708 572 705 550 558 554 624 *
Parking Citations Issued 380 444 696 1, 385 1, 084 1, 389 1, 237 1, 489 * Code Enforcement
Housing Cases 20 35 29 28 54 74 64 55 62
Public Nuisance Cases 61 206 287 345 204 126 165 210 176 Vehicle Cases 12 11 67 193 140 118 129 145 133
Weed Abatement Cases 5 - 2 108 122 126 124 120 123
Building Permits
Single Family Dwellings 130 350 220 291 392 381 649 879 924 Parks and recreation:

Number of recreation classes 202 34 56 67 116 126 95 72 176 Number of facility rentals 1, 870 542 450 390 1, 598 1, 388 1, 041 617 206 Water:

New connections 190 266 179 163 392 381 649 879 924
Average daily consumption 3, 550 3, 508 3, 052 3, 274 4, 200 4, 128 4, 128 4, 742 4, 812 thousands of gallons)
Sewer:

New connections 190 266 179 163 392 381 649 879 924
Transition to City of Lathrop, Police Department
Source: City of Lathrop, California departmental sources. 206

CITY OF LATHROP
Capital Assets Statistics by Function
Last Ten Fiscal Years
2014 2015 2016 2017 2018 2019 2020 2021
Police:

Stations 1 1 1 1 1 1 1 1
Fire:

Fire Stations ( 1)
Public works:

Streets ( miles) 82.0 84. 20 84. 20 84. 20 92.0 92.0 97.0 109. 70 Streetlights 1, 433 1, 448 1, 472 1, 472 1, 835 1, 835 1, 835 2, 135 Parks and recreation:

Parks ( 2) 16 16 16 16 18 20 22 25
Community centers 2 2 2 2 2 2 2 2
Senior centers 1 1 1 1 1 1 1 1
Water:

Water mains ( miles)
Maximum daily capacity
thousands of gallons)

99. 60 101. 80 101. 80 101. 80 101. 80 142. 00 147. 00 159. 00 15, 250 15, 250 15, 250 15, 250 15, 250 16, 500 16, 500 16, 500 Wastewater:

Sanitary sewer (miles) 62. 03 71. 00 71. 00 71. 00 71. 00 91. 80 96. 80 108. 80 Miles of Reclaimed Water Lines 21. 40 21. 80 21. 80 21. 80 21. 80 21. 80 25. 80 27. 80 Maximum daily treatment capaci• 2, 416 2,00 2,00 1, 450 1, 450 3, 140 3, 140 3, 140 thousands of gallons)
NOTE:
1) The City of Lathrop' sfire protection is provided by the Lathrop - Manteca Fire District. 2) Soure: City of Lathrop, Parks and Recreation Guide
Source: City of Lathrop, California departmental sources. 207

CITY OF LATHROP
Water Sold by Type of Customer
Last Ten Fiscal Years
in thousands of gallons)
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Type of Customer:

Residential 690, 963 671, 095 628, 208 625, 187 745, 39 738, 530 794, 181 907, 150 939, 163 950, 154 Industrial 291, 935 343, 21 283, 410 278, 95 395, 110 415,71 406, 181 435, 637 433, 258 530, 793 Commercial 116, 496 91, 599 71, 396 101, 549 139, 20 135,30 145,95 152, 476 157, 053 150, 318 Governmental 157,19 172, 972 177, 791 139, 511 149, 952 126, 71 144, 421 199, 28 187, 615 154, 425 Construction 39, 058 1, 615 49, 923 103, 309 91, 038 85, 601 36, 154 39,57 17,22 Total 1, 295, 571 1, 280, 512 1,60, 805 1,95,55 1, 533, 020 1, 506, 930 1, 575,79 1, 730, 715 1, 756, 446 1, 802,12 Total direct rate
per 1, 000 gallons $ 2. 63 $ 2. 63 $ 3. 04 $ 3. 49 $ 3. 99 $ 3. 99 $ 3. 99 $ 3. 99 $ 3. 99 $ 3. 99 Source: City of Lathrop, California Public Works Department 208

CITY OF LATHROP
Water Rates
Last Ten Fiscal Years
SCSWSP
Monthly Rate per CSCDA Facility
Fiscal Year Base Rate 1, 000 Gallons Loan ( 1) Charge ( 2) 2014 11. 50 2. 63 - 9. 10
2015 11. 50 2. 63 - 9. 10
2016 12. 80 3. 04 9. 10
2017 14. 40 3. 49 - 9. 10
2018 16. 30 3. 99 - 9. 10
2019 16. 30 3. 99 9. 10
2020 16. 30 3. 99 - 9. 10
2021 16. 30 3. 99 - 9. 10
2022 16. 30 3. 99 - 9. 10
2023 16. 30 3. 99 9. 10
NOTE:

Rates are based on 5/ 8" meter, which is the standard household meter size. 1) State of California Loan under the Safe Drinking Water Bond Law of 1976 was paid off on March 1, 2001.
2) On July 16, 2003, The City of Lathrop issued $ 32, 530, 000 in Revenue Bonds to finance the acquisition and construction of water system improvements and related facilities, including water treatment facilities and distribuiton pipelines and to pay cost of issuance. The bonds have an ascending interest rate ranging from 3% to 6% and a final maturity date of June 1, 2035.

Source: City of Lathrop, California Finance Department
209

CITY OF LATHROP
Ten Largest Water Customers
Current Year and Nine Years Ago
2023 2014
Water Customer
Percent of
Water Total Water Percent of Total
Charges Revenues Water Charges Water Revenue
California Natural Products $ 933, 64 8.0% $ 562, 213 10. 75% City of Lathrop 595, 124 5. 61% 325, 80 6. 23%
Manteca Unified School District 235, 136 3. 63% 172, 953 3.1% Super Store Industries 139, 814 1. 32% 104, 619 2. 00%
River Islands Public Finance Authority 65, 307 0. 62% 30, 269 0. 58% Testa Motors Inc 64, 259 0. 61% 0.0%
Pulte Group, INC 55, 290 0. 52% 0.0%
Sansome Skyline Lathrop, LP 52, 145 0. 49% 0.0%
Swiss American Sausage 50, 766 0. 48% 41, 742 0. 80%
IN -N -OUT Burger # 804 50, 326 0. 47% 0.0%
Source: City of Lathrop, California Finance Department
210

CITY OF LATHROP
Top 25 Sales Tax Producers
Current Year and Nine Years Ago
2023
Business Name Business Category
Percent of Fiscal Year Total Paid By Top 25 Accounts = 84. 40% Arco AM PM
Ashley Furniture Dist Center
Boral Roofing
CBC Steel Buildings
Chevron
Chevron Power Market
City Food & Liquor
Eagles Nest Harley Davidson
Fast Lane
Flying J Travel Plaza
In N Out Burger
Joes Travel Plaza
Pape Kenworth
Raymond Handling Concepts
Shell
Target
Tec Equipment
Testa Motors
Top Gun Drywall Supply
Totten Tubes
Tri West
Tuff Boy Sales
Two Guys Food & Fuel Inc
Utility Trailer Sales
Wayfair
Service Stations
Fulfillment Centers
Contractors
Contractors
Service Stations
Service Stations
Convenience Stores/ Liquor
Boats/ Motorcycles
Service Stations
Service Stations
Quick - Service Restaurants
Service Stations
New Motor Vehicle Dealers
Warehse/ Farm/ Const. Equip.

Service Stations
Discount Dept Stores
Trailers/ Auto Parts
Trailers/ Auto Parts
Building Materials
Heavy Industrial
Building Materials
Trailers/ RVs
Service Stations
Trailers/ RVs
Fulfillment Centers
2014
Business Name Business Category
Percent of Fiscal Year Total Paid By Top 25 Accounts = 85. 77% Antonini Brothers
Carpenter Co
CBC Steel Buildings
Creative Touch Interiors
Dragon Products
Eagles Nest Harley Davidson
Fast Lane Food/ Gas Mart
Fleetpride West
Joes Travel Plaza
JR Simplot Company
Kabaritis AM PM
Lathrop Gas & Food
Lathrop Shell
McDonalds
Medcal Sales
Nationwide Fleet Powersports
Owens & Minor Distribution
Save Mart
Target
Top Gun Drywall Supply
Tower Mart
USAMotors. Com
Utility Trailer Sales
Valero
Walgreens
Service Stations
Textiles/ Furnishings
Heavy Industrial
Home Furnishings
Heavy Industrial
Boats/ Motorcycles
Service Stations
Trailers/ Auto Parts
Service Stations
Food Service Equip./ Spplies
Service Stations
Service Stations
Service Stations
Quick Service Restaurants
Medical/ Biotech
Boats/ Motorcycles
Medical/ Biotech
Grocery Stores Liquor
Discount Dept Stores
Lumber/ Building Materials
Service Stations
Used Automotive Dealers
Trailers/ RVs
Service Stations
Drug Stores
Firms Listed Alphabetically
Source: State Board of Equalization, California Department of Taxes and Fees Administration, State Controller' sOffice. 211

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Lathrop City CouncilMarch 11, 2024

Lathrop City Council
March 11, 2024